Tesla is undergoing a significant recall of nearly all 2 million of its cars on US roads, focusing on restricting the use of its Autopilot feature. This action follows a two-year investigation by US safety regulators into approximately 1,000 crashes where Autopilot was engaged. The National Highway Traffic Safety Administration (NHTSA) has raised concerns that Autopilot can create a false sense of security and be misused, particularly in dangerous situations where Tesla’s technology may struggle to navigate safely.

As part of the recall, Tesla is implementing an over-the-air software update that will increase warnings to drivers when they are not attentive while using the Autopilot’s “Autosteer” function. These notifications are designed to remind drivers to maintain hands on the wheel and focus on the road. Post-update, Tesla vehicles with Autosteer activated will frequently check the driver's attention level and may disengage the feature under specific conditions, like approaching traffic controls or when driving off the highway where Autosteer alone isn’t sufficient.

The recall is a setback for Tesla, which has marketed its vehicles as being capable of autonomous driving, charging customers extra for advanced driver-assist features. However, NHTSA's findings and recent investigations, including a Washington Post report on serious accidents involving Autopilot, indicate that these features do not consistently live up to their self-driving claims.

This is not Tesla’s first encounter with NHTSA over its Autopilot and Full Self Driving features. Past issues have included accidents involving emergency vehicles and violations of traffic laws, leading to other recalls and updates. Tesla's emphasis on Autopilot and Full Self Driving, as well as the additional costs for these features, has been a significant part of its market strategy. The company's approach has been met with mixed reactions from consumers, with some questioning the value of these features.

The recall and its implications extend beyond immediate safety concerns. As Tesla is a highly valued automaker with significant investor expectations around future sales growth and software innovation, the reliability and safety of its self-driving technology are crucial. CEO Elon Musk has expressed that artificial intelligence and its application in self-driving vehicles and humanoid robots are central to Tesla's long-term value and potential to become the most valuable company globally.

The recall and consequent software updates will likely impact Tesla's marketing and development of autonomous driving technologies, as well as its reputation in the evolving field of AI and self-driving vehicles.