Electric vehicle and clean energy company, Tesla, has issued a recall for 362,758 vehicles equipped with its driver-assistance software “Full Self-Driving” (FSD) Beta in the US, citing the possibility of crashes. As per the recall notice, Tesla expects to deliver an over-the-air (OTA) software update to the vehicles to fix the issue.

The National Highway Traffic Safety Administration (NHTSA) noted that the FSD system does not adhere to traffic safety laws adequately. It noted that the system allows vehicles to behave unsafely at intersections and struggles to respond to changes in posted speed limits, which could lead to potential crashes.

The affected vehicles include the 2016–2023 Model S and Model X, 2017–2023 Model 3, and 2020–2023 Model Y vehicles equipped with or pending installation of FSD Beta.

However, Elon Musk went on to object to the use of the term “recall,” as the company plans to fix the issue over an OTA software update.

Analyst QuickTake: Today’s recall is a fresh setback for Tesla’s FSD, which faces growing regulatory and public scrutiny. Tesla is under investigation by the NHTSA following a series of crashes involving Tesla cars, of which many were fatal. The California State government is also targeting Tesla’s Autopilot and FSD’s branding , as the terms suggest fully autonomous operations although it requires the driver to be present and maintain full vigilance. Tesla rolled out its FSD Beta across the US just over two months ago.