Several Tesla cars have crashed during autonomous driving, Musk is preparing to introduce a model without a steering wheel and foot controls

Federal auto regulators in the United States have stepped up their investigation into Tesla after several of its cars crashed while using its self-driving feature, and its CEO Elon Musk is preparing to unveil a new model - without a steering wheel and without foot controls.

The US National Highway Traffic Safety Administration (NHTSA) said in a March 18 memo that it is investigating nine accidents in which autonomous driving software failed to quickly warn drivers to take control in fog and other poor conditions because the vehicle's cameras failed to detect road hazards.

The NHTSA letter signals that a regulatory investigation initiated in 2024 into low-visibility crashes could now lead to legal action, which could include the recall of 3,2 million Tesla vehicles from the road.

Tesla shares fell 3,2% to $380,30.

The increased regulatory scrutiny comes as Tesla tries to convince investors that the company's future lies less in selling cars, which are experiencing declining sales, and more in making its autonomous driving software ubiquitous.

Musk said he will soon convert millions of Tesla cars already on the road into taxis that their owners can rent out when they are not in use.

As part of that transition, Musk said Tesla will launch its driverless robotaxi service in several US cities this year.

It also plans to start production of its Cybertaxi without a steering wheel and foot controls and sell it to customers as early as next month.

Tesla did not immediately respond to a request for comment.

Unlike other autonomous vehicles, Tesla's vehicles rely solely on cameras to spot problems on the road. Such vehicles from other manufacturers supplement the cameras with light radar - laser lidar, a more expensive method that Musk dismissed as unnecessary.

NHTSA's investigation into crashes when there is sun glare, dust or excessive fog will now move to "engineering analysis," a deeper level of examination.

Tesla called its driver-assistance software "Full Self-Driving (FSD), a name that automotive experts and regulators said was misleading because drivers must always keep their eyes on the road and be ready to take control at any time. The company has since changed the name to "Full Self-Driving (Supervised)."

Of the nine crashes included in the study, Tesla told regulators that three would not have occurred with the new online FSD upgrades.

Tesla faces several other regulatory investigations, including one over its FSD-equipped cars running red lights and another over fully electronic door locks that allegedly failed during crashes, trapping passengers in the vehicles.