Tesla Recalling Almost 54,000 Vehicles Over Full Self-Driving Beta Software 'Rolling-Stop' Feature

Tesla, Inc. TSLA could be facing a setback with its full-self driving software that is currently in beta testing.

What Happened: Tesla is recalling 53,822 vehicles in the U.S. equipped with FSD beta software that allows "rolling stops," according to documents filed with the National Highway Traffic Safety Administration. The rolling stop feature may prevent vehicles from coming to a complete stop at some intersections, which poses a safety risk.

The recalled vehicles included some 2016-2022 Model S sedans and Model X vehicles, 2017-2022 Model 3 sedans, and 2020-2022 Model Y SUVs.

An updated version of FSD introduced through an over-the-air firmware update in late October introduced the "rolling stop" functionality, the company said. To use the feature, the vehicle should be travelling below 5.6 miles per hour, with no relevant moving cars, pedestrians or bicyclists detected near the intersection, it added.

According to Tesla, as of Jan. 27 the feature did not result in crashes or injuries, but the EV maker agreed to the recall after two meetings with NHTSA, one on Jan. 10 and another on Jan. 19. The recall determination was voluntarily made on Jan. 20.

The company said firmware will be released to disable the rolling stops in early February.

Related Link: 'Fear Of Getting Run Over' Causing Tesla Shares To Drop After 'Impressive Results' : Analyst

Why It's Important: Tesla has come under NHTSA scrutiny multiple times over the past year. In mid-August, the federal regulator opened a probe into its Autopilot feature.

The company was taken to task yet again in October for failing to file recall documents when it deployed OTA updates to its Autopilot software. At that time, the regulator also voiced concerns about the company's FSD software.

Tesla's FSD early access beta release program has non-disclosure agreements, which allegedly prevent participants from sharing information portraying the feature negatively, the agency had said.

In November, the company recalled 11,704 vehicles due to a software error that could cause a false forward-collision warning or unexpected activation of the automatic emergency brake system.

The NHTSA began another safety probe into 580,000 Tesla vehicles in late December over their ability to run games on the onboard infotainment systems. The functionality called "Passenger Play" may distract drivers, thereby increasing the risk of a crash, the regulator said.

The negative headline on Tesla's FSD feature comes at a time when the company is fine-tuning the software with multiple upgrades. CEO Elon Musk announced in January an increase to the price of FSD package from $10,000 to $12,000, and also confirmed an increase in the monthly subscription fee from the current $199 when a wider release materializes.

At last check, Tesla shares were down 1.29% at $924.66.

Related Link: After Repeated Snubs, Elon Musk Wants Biden To Acknowledge Tesla's EV Leadership