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Tesla’s latest Full Self-Driving (FSD) software has again shown troubling lapses, failing to stop for a flashing school bus sign, ignoring traffic signals, and making erratic lane changes during a 90-minute drive in Los Angeles.
The test was documented by Forbes, which used a 2024 Model Y with Tesla’s latest Hardware 4 and FSD version 13.2.9. The vehicle was provided by the Dawn Project, a group that has long criticized Tesla’s driver-assist system.
Dan O’Dowd, who leads the project, said in a post on X that the car made “7 safety critical errors,” including attempting to drive the wrong way down a one-way street and “illegally blowing past a stopped school bus.”
The school bus issue is not a new one. Two years ago, the Dawn Project ran a similar test and found the car failed to stop for flashing signs indicating children might be crossing. Forbes said the problem remains unfixed, raising questions about Tesla’s claims of progress on safety.
Tesla markets FSD as “Full Self-Driving (Supervised)” and sells it as an $8,000 add-on, with an optional $99 monthly subscription. Despite its name, the system is categorized as Level 2 partial automation, requiring a fully attentive driver at all times. Critics argue that branding and promotion exaggerate its capabilities.
The lapses come as regulatory pressure mounts. The U.S. auto regulator has launched a probe into Tesla’s handling of crash reports involving Autopilot and Full Self-Driving. The agency stated that automakers are responsible for certifying their own systems as safe, but noted that it will intervene if those technologies are found to endanger drivers.
Tesla’s driver-assist technology also faces challenges in court. A jury in Florida last month ordered the company to pay $243 million over a 2019 crash involving Autopilot, while lawsuits in California were recently settled. California’s DMV is separately seeking to bar the company from using names like “Autopilot” and “Full Self-Driving” on the grounds that they may mislead consumers.
Meanwhile, Tesla is piloting a robotaxi service in Austin with FSD technology. Unlike fully autonomous rivals such as Alphabet’s Waymo, Tesla’s trial includes a safety driver behind the wheel. Reports of crashes during the pilot have added to questions about whether the system is ready for broader rollout.
Despite growing scrutiny, CEO Elon Musk continues to promote FSD as central to Tesla’s future. His compensation package is tied to ambitious goals, including 1 million Tesla robotaxis on the road and 10 million active FSD users over the next decade.
On Stocktwits, retail sentiment for Tesla was ‘neutral’ amid ‘high’ message volume.
Tesla’s stock has risen 5.5% so far in 2025.
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