Tesla reached a confidential settlement with the family of Johna Story following a fatal November 2023 crash in Arizona. A Tesla Model Y operating on Full Self-Driving (FSD) struck Story at high speed while she directed traffic. This incident represents the first known pedestrian death associated with Tesla’s FSD system.
The National Highway Traffic Safety Administration (NHTSA) launched an investigation into how the camera-based system handles impaired visibility like sun glare. Federal regulators recently upgraded the probe to an engineering analysis covering millions of Tesla vehicles. Such an escalation often precedes a formal safety recall.