NHTSA Escalates FSD Scrutiny to Engineering Analysis

The National Highway Traffic Safety Administration (NHTSA) has significantly intensified its oversight of Tesla’s Full Self-Driving (FSD) software, upgrading its probe to an "Engineering Analysis" CleanTechnica. This is the final procedural step before the agency can formally demand a vehicle recall Autobody News. The investigation now encompasses approximately 3.2 million vehicles across the Model S, X, 3, Y, and Cybertruck lines Insurance Journal.

Regulators are specifically targeting the system's performance in "degraded visibility" conditions, including sun glare, fog, and "airborne obscurants" like dust or winter road spray CleanTechnica. NHTSA has identified nine specific incidents—including one fatality and two injuries—where FSD failed to detect roadway hazards or provide adequate warnings to drivers before impact Insurance Journal. The probe questions whether Tesla’s "Vision" system, which abandoned radar in 2021 for a camera-only approach, can safely navigate environments that naturally impair optical sensors Autobody News.

Uber and Rivian Form $1.25 Billion Robotaxi Alliance

While Tesla focuses on regulatory hurdles, a formidable new competitor has emerged in the autonomous ride-hailing space. Uber and Rivian announced a partnership to deploy up to 50,000 fully driverless robotaxis over the next decade Autoweek. The deal includes an initial $300 million investment from Uber, which could scale to $1.25 billion by 2031 based on Rivian hitting specific autonomy milestones CleanTechnica.

The fleet will be based on Rivian’s upcoming R2 electric SUV and will utilize a third-generation autonomy platform featuring 11 cameras, five radars, and one LiDAR sensor Autoweek. This hardware-heavy approach stands in direct contrast to Tesla's camera-only strategy. The partners plan to launch the first 10,000 vehicles in San Francisco and Miami in 2028, eventually expanding to 25 cities across North America and Europe Autoweek. For Uber, the move represents a "many baskets" strategy to diversify its autonomous partners beyond Waymo and Tesla CleanTechnica.

European FSD Approval Nears April Decision

Tesla’s push into the European market is entering a critical phase. The company confirmed it has completed testing of its supervised FSD system with the Netherlands’ vehicle safety regulator, the RDW Market Watch. A final decision is expected by April 10, a milestone that could grant Tesla access to the broader European Union TradingView.

The timing is vital as Tesla struggles with cooling demand in the region; sales in the E.U., UK, and EFTA nations dropped 17% in January and fell a total of 27% across 2025 Market Watch. Elon Musk has publicly joked that approval will "inevitably" arrive on April 20, though the RDW has declined to confirm a definitive timeline for its review Market Watch.

Market Watch

Tesla (TSLA) closed Friday at $367.96, representing a +0.00% change from the previous day. Markets are currently closed for the weekend. While Tesla remained flat, the broader Nasdaq tumbled 2.01% as investors braced for potential interest rate hikes in 2026 amid an ongoing three-week conflict between the U.S. and Iran TipRanks. High oil prices, currently hovering between $130 and $150, are further fueling recession fears and dampening hopes for near-term rate cuts Forbes.