Tesla settles FSD crash lawsuit amid ongoing federal investigations
Original: Tesla settles FSD crash lawsuit as federal investigations continue
Why This Matters
NHTSA's ongoing engineering analysis could result in a Tesla recall, posing significant regulatory and financial implications for the company's autonomous driving program.
Tesla has settled a lawsuit connected to a fatal 2023 crash involving its Full Self-Driving system. The settlement terms were not disclosed. The National Highway Traffic Safety Administration continues investigating FSD's performance in low visibility conditions after four reported crashes.
Tesla has settled a lawsuit filed by the daughter of Johna Story, a 71-year-old woman struck and killed by a Tesla Model Y in 2023 while she was directing traffic around an earlier crash caused by sun glare. The settlement terms remain undisclosed. The National Highway Traffic Safety Administration (NHTSA) opened an investigation into Tesla's FSD (Supervised) software in 2024 following four reported crashes occurring in low visibility conditions, including the incident involving Story. NHTSA stated it was investigating whether the driver assistance system could "detect and respond appropriately to reduced roadway visibility conditions," such as sun glare, fog, or airborne dust. In March 2026, NHTSA upgraded the investigation to an engineering analysis, reporting that "Available incident data raise concerns that Tesla's degradation detection system, both as originally deployed and later updated, fails to detect and/or warn the driver appropriately under degraded visibility conditions such as glare and airborne obscurants." The settlement closes the family's civil lawsuit, but the federal investigation remains open. NHTSA also opened a separate investigation into FSD in October 2025 after receiving reports that the software caused vehicles to run red lights or cross into wrong lanes. Possible outcomes from the federal investigation include a recall.