Tesla has settled a lawsuit filed by the family of Johna Story, a 71-year-old woman killed in 2023 when a Tesla Model Y struck her after she exited her own vehicle to direct traffic around a crash site affected by sun glare. The settlement resolves the family's claim against Tesla and the vehicle's driver, though settlement terms remain confidential. Meanwhile, the National Highway Traffic Safety Administration continues a separate federal investigation into Full Self-Driving that began in October 2025 after reports of the software causing red-light violations and improper lane changes.
The NHTSA's investigation into FSD expanded after initially examining four low-visibility crashes reported by consumers. In March 2026, the agency upgraded its inquiry to an engineering analysis, concluding that Tesla's system for detecting degraded visibility conditions—such as heavy rain, snow, or sun glare—fails to properly alert drivers when the software's performance may be compromised. This safety gap mirrors conditions present in the 2023 crash that led to the now-settled lawsuit.
Tesla has taken steps to address safety concerns through the settlement and may use the NHTSA feedback to improve FSD's degradation detection capabilities.
The federal investigation's findings indicate systemic issues with FSD's ability to recognize when visibility is reduced, raising questions about whether the software should operate without explicit driver awareness of its limitations.
A woman was hit by a self-driving Tesla while directing traffic in poor sunlight conditions. Tesla settled the lawsuit over that crash, but the government is still investigating whether Tesla's self-driving software reliably warns drivers when it cannot 'see' properly in fog, rain, or glare.
The federal agency could recommend operational limits for FSD in low-visibility conditions or require enhanced driver alerts before the software operates.
scenario – not a predictionTesla could deploy updates to strengthen how the car detects degraded visibility and alerts the driver, potentially resolving NHTSA's core finding.
scenario – not a predictionNHTSA could expand its examination to include other autonomous driving systems beyond FSD or pursue regulatory action against Tesla.
scenario – not a prediction