Tesla Recalls 360,000 FSD Cars That Could Causing Car Accident

According to the company's recall notice, Tesla's Autopilot system FSD Beta may cause car accidents, including going straight on the turning lane, stopping-and-not-moving in front of stop signs, driving over yellow lights, and not responding to changes in speed limit signs in time. That puts the company on track to recall 362,758 vehicles in the U.S. that have FSD Beta. According to the company's latest financial report, in North America, Tesla has about 400,000 people using FSD Beta, which means that this recall is estimated to be almost all vehicles in the United States.

But how will this the so-called “recall” work? In fact, not like other car companies that need to return the car to the factory, Tesla only needs to do a software update, which may be solved overnight. That's why the stock price didn't drop much when the news came out, and only retreated about 1%. Musk and some Tesla fans dislike the word ""recall"" very much, saying that Tesla's cars basically have few mechanical problems. The reported recalls are all about the software, which can be resolved by downloading software updates, causing unnecessary misunderstandings for many consumers.

Despite this news looks bad, but it actually has very little impact on Tesla. Although such news will have a negative impact on FSD and may even force Tesla to change the name of this software, but from the performance perspective, the company's self-driving car accounts for a small proportion of revenue. Most customers are just buying cars. The only thing that needs to be cautious is whether regulators will overreact on FSD and it may affect the development of FSD. At this point, this risk is still low.