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U.S. investigates 2.9 million Teslas over Full Self-Driving traffic violations

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The U.S. National Highway Traffic Safety Administration (NHTSA) has launched an investigation into 2.88 million Tesla vehicles equipped with the company’s Full Self-Driving (FSD) software after receiving more than 50 reports of traffic violations and crashes linked to the system.

The agency said the FSD feature — which requires driver attention and intervention — has in some cases “induced vehicle behavior that violated traffic safety laws,” including driving through red lights and making illegal lane changes. So far, 58 incidents have been reported, 14 resulting in crashes and 23 injuries, according to NHTSA.

In at least six cases, Teslas running FSD reportedly entered intersections against red signals, leading to collisions, four of which caused injuries. The regulator said it is also examining FSD’s behavior at railroad crossings following concerns raised by U.S. lawmakers over near-miss incidents.

The probe marks a preliminary evaluation, the first stage before a potential vehicle recall if safety risks are confirmed. Tesla shares slipped 2.1% following news of the investigation, first reported by Reuters.

Tesla recently issued a software update for FSD, though the company has not publicly commented on the probe. The system has been under continuous federal scrutiny amid concerns that its branding and performance blur the line between driver assistance and full automation.

Experts say the U.S. action may pressure other regulators to examine the growing use of semi-autonomous technologies in vehicles worldwide.

Waymo Launches Corporate Robotaxi Accounts to Target Business Travel

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Alphabet-owned Waymo announced on Wednesday the launch of “Waymo for Business,” a corporate program that allows companies to set up accounts for employees to use its robotaxi service across Los Angeles, Phoenix, San Francisco, Austin, and Atlanta.

The initiative is aimed at tapping into recurring corporate travel demand, giving employers tools to control when, where, and how staff use autonomous rides. It marks another step in Waymo’s efforts to expand the commercial use of its driverless fleet.

Waymo said it now completes more than 1 million rides per month, with nearly one in six riders in San Francisco, Los Angeles, and Phoenix using the service for commuting. The company has recently expanded operations, launching paid driverless rides in Atlanta and broadening coverage in Austin.

Through an administrative portal, organizations can manage employee access, issue promo codes, and generate reports to track ride usage and expenses. Early adopters include Carvana, the Phoenix-based online used-car retailer.

The business service is still in its early stages, but Waymo said more features will be added over time to support companies of various sizes.

A key focus for Waymo is airport access, a priority for frequent business travelers. The company already serves Phoenix Sky Harbor Airport, recently gained approval to operate at San José Mineta International Airport, and holds a testing permit at San Francisco International Airport ahead of possible commercial service.

Emails reveal regulators were alarmed and confused by Musk’s Bay Area “robotaxi” claims

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Tesla’s promised “robotaxi” rollout in the San Francisco Bay Area wasn’t driverless at all—and regulators were blindsided. Emails obtained via public-records requests show California and U.S. officials were alarmed after Elon Musk publicly suggested Tesla was “getting the regulatory permission to launch,” even though the company had not applied for the permits required to test or operate autonomous taxis in California. Tesla’s actual plan was invite-only rides in human-driven vehicles under a limousine-style permit that doesn’t allow on-demand robotaxis.

Officials at the California Public Utilities Commission and NHTSA pressed Tesla to clarify public statements to avoid “public confusion.” Tesla’s policy staff told the state it would inform customers “when available” and generally doesn’t respond to press, while Musk continued to tout robotaxi scale on X and to blur the term with Tesla’s “Full Self-Driving” driver-assist feature that still requires an attentive human driver.

The regulatory skepticism comes as Tesla pushes for rapid robotaxi expansion and seeks to test in permissive states such as Arizona and Nevada, where approvals for autonomous testing with safety drivers are advancing—still far from fully driverless commercial operations. California authorities reiterate that separate DMV and CPUC permits are prerequisites for any paid driverless service in the state, and Tesla hasn’t obtained them.

Beyond the Bay Area episode, the gap between marketing and regulatory filings will matter more as investors weigh Musk’s ambitious timelines against legal guardrails. Agencies say Tesla must “properly and accurately” describe services—clearly distinguishing human-driven pilots from autonomy—if it wants to avoid enforcement headaches as it scales.