In a dramatic move, Tesla announced a recall of nearly all 2 million of its cars on US roads due to safety concerns related to its Autopilot feature. The decision comes after a two-year investigation by the National Highway Traffic Safety Administration (NHTSA) into approximately 1,000 crashes involving Tesla vehicles with Autopilot engaged.

The NHTSA found that the Autopilot system can give drivers a false sense of security and may be easily misused in dangerous situations where the car's technology cannot navigate the road safely. To address these concerns, Tesla will introduce an over-the-air software update that will provide more explicit warnings to drivers who are not paying attention while utilizing the Autosteer function. These notifications will remind drivers to keep their hands on the wheel and remain vigilant.

Following the recall, Tesla vehicles with Autosteer enabled will regularly monitor the driver's attention level and may disengage the feature if the software detects the driver's lack of attentiveness, the approach of traffic controls, or when the car is not on the highway and Autosteer alone is insufficient to drive the vehicle.

The recall was disclosed in a letter from the NHTSA to Tesla, which outlined the agreement for a software update that will limit the use of the Autosteer feature if drivers repeatedly fail to demonstrate readiness to resume control of their cars. Tesla will also send letters to car owners informing them of the changes.

Tesla has been actively promoting its driver-assist features, including Autopilot and "Full Self Driving," as safety-enhancing technologies. However, the NHTSA's study of accidents involving Autopilot and Autosteer has raised questions about the effectiveness and reliability of these features over the past two years.

Recently, a detailed investigation by the Washington Post revealed eight serious accidents, including some fatalities, in which the Autopilot feature had been engaged improperly. Although Tesla's owner manuals clearly state that Autosteer is intended for use on highways and limited-access roads with an attentive driver, Tesla has emphasized the idea that their driver-assist features can safely handle many driving tasks beyond those settings.

The NHTSA's letter to Tesla mentioned that certain circumstances may lead to driver misuse of Autosteer and cited the need for improved controls and clearer indications to prevent such instances. The regulator warned that when drivers are not fully engaged and prepared to take control when needed, there is an increased risk of accidents.

It is worth noting that this is not the first time NHTSA has compelled Tesla to make changes to its Autopilot or Full Self Driving features due to safety concerns. In February, Tesla conducted a recall of all 363,000 US vehicles equipped with the Full Self Driving feature after discovering instances where the cars violated traffic laws.

Similar scrutiny has been faced by other automakers offering self-driving features. General Motors' Cruise unit recently suspended its driverless taxi service nationwide after an accident led to the suspension of its operations in California by state authorities.

Despite the safety issues surrounding its driver-assist features, Tesla remains the most valuable automaker globally, with its stock price reflecting optimism in terms of future sales growth and the potential value of its software. Tesla's CEO, Elon Musk, sees investments in artificial intelligence and the development of self-driving vehicles and humanoid robots as crucial to the company's long-term success.

While some Tesla owners have expressed doubts about the value of the advanced driver-assist features, the reports of serious accidents and fatalities involving Autopilot could pose challenges for the company's marketing efforts and the perceived worth of these expensive features.

Tesla's stock experienced a slight decline following the recall announcement.