NHTSA allows Tesla, Inc. (TSLA.US) to delay FSD traffic violation defect investigation response until the end of February.

The American regulatory agency has granted Tesla, Inc. (TSLA.US) a five-week extension to begin investigating the company's vehicles for violations of traffic laws when using the Full Self-Driving (FSD) system. Tesla, Inc. applied this week to the National Highway Traffic Safety Administration (NHTSA) for an extension of the investigation period. NHTSA is investigating a series of functions related to Tesla, Inc.'s FSD. The agency initiated the investigation in October last year and cited dozens of cases of Tesla, Inc. vehicles running red lights, driving against traffic, or other malfunctions. Last month, NHTSA requested information from Tesla, Inc. asking the company to provide the number of consumer complaints, on-site reports, property damage claims, arbitration procedures, or lawsuits related to the alleged defects. Tesla, Inc. informed the regulatory agency on January 12 that they needed more time to identify traffic violation reports that may be relevant to the investigation. According to documents submitted by Tesla, Inc. to NHTSA, as of today, there are still 8,313 records that need manual review. The company estimates that they can process about 300 records per day and need to respond by February 23. The proficiency of FSD is becoming increasingly important for Tesla, Inc. CEO Elon Musk hopes that the system can boost market demand as the company's annual vehicle deliveries have been declining. Despite Musk often praising the effectiveness of Tesla, Inc.'s autonomous driving features, the company has been accused by the state of California of exaggerating the performance of its cars and threatened with a 30-day sales suspension, which may take effect early this year. In addition to investigating Tesla, Inc.'s violations of traffic safety regulations when using the FSD feature, NHTSA is also reviewing the company's vehicles' ability to detect and respond properly to glare from sunlight, fog, and other low visibility environments. Following several accidents, including one resulting in a fatality, the agency initiated this investigation in October 2024. In the extension request submitted to NHTSA this week, Tesla, Inc. complained about the piles of inquiries from the regulatory agency. In addition to NHTSA's inquiries about FSD and traffic violations, the company is also preparing responses to NHTSA's investigations into delays in accident reports and malfunctioning door handles. Tesla, Inc. told the regulatory agency that responding to three large information requests in a short period of time is "overwhelming and affecting the quality of responses."