U.S. regulators have given Tesla a five-week extension to address claims of traffic law violations by vehicles operating in 'full self-driving' mode.
The National Highway and Traffic Safety Administration initiated an investigation into Tesla's full-self driving feature due to reported incidents of cars running red lights, driving on the wrong side of the road, and causing accidents.
Critics argue that Tesla's full self-driving technology may mislead drivers into relinquishing full control to the vehicles, leading to potential safety issues.
Regulatory Scrutiny
Tesla faces investigation by regulators over alleged incidents of traffic infractions related to its full self-driving technology.
Competition and Sales
Tesla lost its position as the top-selling electric vehicle maker in 2025, partially due to factors like expiring tax breaks and increased competition, resulting in a 9% drop in vehicle deliveries compared to the previous year.
Future Technology
Tesla is developing advanced versions of its full self-driving software, aiming to introduce a version that operates without driver intervention, potentially reshaping the future of autonomous driving.
- Tesla's reputation and market position have been affected by the regulatory investigation into its full self-driving technology, adding pressure to demonstrate the system's safety and reliability.
- The decline in Tesla's vehicle deliveries and loss of its top-selling status highlight the challenges the company faces in a competitive electric vehicle market.
Despite facing regulatory challenges and sales decline, Tesla's focus on advancing autonomous driving technology and futuristic ventures like robotaxi services and humanoid robots has garnered investor optimism, with the company's stock closing 2025 on a positive note.