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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.

Adani Solar Deal Under Bribery Scrutiny Approved Despite Officials’ Warnings

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The approval of a $490 million solar power deal in Andhra Pradesh, linked to Adani Green and now under U.S. bribery scrutiny, occurred despite warnings from finance and energy officials, according to records and interviews reviewed by Reuters.

The deal began on September 15, 2021, when the Solar Energy Corporation of India (SECI) unexpectedly approached the state government with an offer for India’s largest renewables contract. Despite Andhra Pradesh’s 2019 energy forecast showing no immediate need for solar power, the state cabinet led by then-Chief Minister YS Jagan Mohan Reddy gave the deal preliminary approval the next day.

By December 1, 2021, Andhra Pradesh signed a procurement agreement with SECI for 7,000 megawatts of solar power, 97% of which would go to Adani Green. The unusually swift approval—57 days from SECI’s approach to regulatory consent—has drawn attention, with critics describing the pace as highly irregular.

The U.S. Department of Justice indicted Adani and seven others in November, alleging that $228 million in bribes were offered to influence Andhra Pradesh’s decision to purchase the solar power. While Adani Group has denied all allegations as “baseless,” state and federal documents reveal that political leaders ignored financial warnings.

Finance and energy officials had raised concerns over the deal’s cost and timing. The finance department warned on October 28, 2021, that falling solar prices would make future contracts cheaper and questioned the need for a 25-year agreement, given that supply would begin only in 2024. Additionally, the department noted Andhra Pradesh had significant leverage as the buyer.

Despite this advice, the cabinet proceeded with the deal, “overruling the finance remark,” according to meeting minutes. Andhra Pradesh agreed to a rate of 2.49 rupees per kilowatt-hour, but analysts suggest the price will rise by as much as 23% after taxes and duties.

Delays in grid availability have postponed the supply date beyond 2024, according to Adani Green. Meanwhile, the new government under Chief Minister N. Chandrababu Naidu is considering suspending the agreement due to the U.S. indictment of Adani. A decision is expected by year-end.

Should the deal proceed, Andhra Pradesh’s treasury faces hundreds of millions of dollars in annual payments, equivalent to its social security and nutrition program spending for the previous fiscal year.