Tesla recalls 362,000 US vehicles over Full Self-Driving software

Tesla Inc TSLA.O is recalling 362,000 US vehicles because its Full Self-Driving (FSD) Beta software may cause a crash, the National Highway Traffic Safety Administration (NHTSA) said on Thursday.

The auto safety regulator said the Tesla software allows a vehicle to "exceed speed limits or travel through intersections in an unlawful or unpredictable manner increases the risk of a crash." Tesla will release an over-the-air (OTA) software update, free of charge.

Tesla said is not aware of any injuries or deaths that may be related to the recall issue

The recall covers 2016-2023 Model S, Model X, 2017-2023 Model 3, and 2020-2023 Model Y vehicles equipped with FSD Beta software or pending installation.

"The feature could potentially infringe upon local traffic laws or customs while executing certain driving maneuvers," NHTSA said. Possible situations where the problem could occur include traveling or turning through certain intersections during a yellow traffic light and making a lane change out of certain turn-only lanes to continue traveling straight.

NHTSA said "the system may respond insufficiently to changes in posted speed limits or not adequately account for the driver's adjustment of the vehicle's speed to exceed posted speed limits."

Last year, Tesla recalled nearly 54,000 US vehicles with FSD Beta software that may allow some models to conduct "rolling stops" and not come to a complete stop at some intersections, posing a safety risk.

Tesla and NHTSA say FSD's advanced driving features do not make the cars autonomous and require drivers to pay attention.