NHTSA Probes 3.2M Teslas as European Sales Jump 12%
Tesla faces an escalated NHTSA investigation into its Full Self-Driving system’s reduced-visibility performance, probing 3.2 million vehicles and threatening its autonomy-driven growth narrative as shares have declined 25% since December highs. European deliveries rose 12% year-over-year in February, marking the first annual increase since late 2024 and providing a demand boost in a key market.
1. NHTSA Expands FSD Investigation
The National Highway Traffic Safety Administration has broadened its probe into Tesla’s Full Self-Driving system, focusing on its ability to operate under reduced-visibility conditions. This investigation covers approximately 3.2 million vehicles and poses risks of fines, mandated software updates or recalls that could disrupt Tesla’s autonomy-driven growth strategy and weigh on its valuation.
2. European Deliveries See First Annual Gain
Tesla’s European deliveries rose 12% year-over-year in February, representing the first positive annual comparison since late 2024. The rebound in Europe offers a critical revenue uplift as Tesla navigates intensified U.S. regulatory scrutiny and works to stabilize global sales momentum.