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Tesla 'Recalls' 360,000 Vehicles With FSD Beta to Fix Software

Tesla is recalling nearly 363,000 electric vehicles (including 20,667 in Canada) because of problems with their driver-assistance technology that heighten crash risk, according to a U.S. regulatory announcement seen by AFP Thursday.

The recall affects a range of Model S, Model X, Model 3 and Model Y vehicles from between 2016 and 2023, equipped with "Full Self-Driving Beta" technology, said a National Highway Traffic Safety Administration notice.

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To remedy the problem, Tesla will release a software update that can be implemented remotely.

Photo: Tesla

Problems with Tesla's FSD Beta system mean cars could undertake maneuvers that "could potentially infringe upon local traffic laws or customs, which could increase the risk of a collision if the driver does not intervene," said an NHTSA notice.

The driver-assistance system "may allow the vehicle to act unsafe around intersections" by not coming to a complete stop at a stop sign, traveling straight in a turn-only lane or running an orange light, NHTSA said in a letter to Tesla.

The system also "may respond insufficiently to changes in posted speed limits," the NHTSA letter said.

Tesla shares fell around five percent following the announcement.

Photo: Tesla

The company's CEO Elon Musk downplayed the setback on Twitter, agreeing with a user who said the term "recall" should not be used for problems that can be addressed without significant repair.

"The word 'recall' for an over-the-air software update is anachronistic and just flat wrong!" Musk wrote.

The action comes as US regulators investigate Tesla's driver assistance programs on a number of fronts.

Last month, Tesla disclosed that the Department of Justice opened an investigation into its driver-assistance program. That is on top of an ongoing NHTSA review of Tesla's "Autopilot" following several safety incidents.

Musk has aggressively touted Tesla's driver-assistance programs, which have not progressed as quickly as he said they would.

In 2019, Musk said the company would be able to produce a fully autonomous vehicle within a year -- an outcome that has still not come to pass.

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