Tesla is recalling more than two million vehicles sold in the US after its driver assistance system Autopilot was found to be defective.
It follows a two-year investigation into a series of deadly collisions which happened when Autopilot was in use at the Elon Musk owned company.
National Highway Traffic Safety Administration (NHTSA) has dispatched investigators to 35 Tesla crashes since 2016 in which the agency suspects the vehicles were running on an automated system. At least 17 people have been killed.
The Autopilot feature can steer, accelerate and brake, but despite its name, it cannot drive itself and is a driver-assist system.
Independent tests have found that the driver monitoring system is easy to fool. Drivers have been caught while driving drunk or even sitting in the back seat.
Nearly all Tesla vehicles sold in the US will be recalled to update the software and fix a system that is supposed to ensure drivers are paying attention.
Tesla said it would send a software update "over the air" to fix the issue, the BBC reports.
The update will increase warnings and alerts to drivers and limit the areas where basic versions of Autopilot can operate, the US safety regulator has said.
The recall covers models Y, S, 3 and X produced between October 5 2012, and December 7 of this year.
Safety experts have said while the recall is a good step, it does not fix the underlying problem that Tesla's automated systems have trouble spotting obstacles in their path.
Agency investigators met with Tesla starting in October to explain "tentative conclusions" about the fixing the monitoring system, according to recall documents.
Tesla did not concur with the NHTSA's analysis but agreed to the recall on December 5 in an effort to resolve the investigation.
In its statement, NHTSA said the investigation remains open "as we monitor the efficacy of Tesla's remedies and continue to work with the automaker to ensure the highest level of safety".
In a statement posted on X, formerly Twitter, on Monday, Tesla said safety is stronger when Autopilot is engaged.
The investigations are part of a larger probe by the NHTSA into multiple instances of Teslas using Autopilot crashing into emergency vehicles.
NHTSA has become more aggressive in pursuing safety problems with Teslas, including a recall of Full Self Driving software.
In May, Transportation Secretary Pete Buttigieg, whose department includes NHTSA, said Tesla should not be calling the system Autopilot because it cannot drive itself.
Tesla has yet to respond to requests for comment.