The Austin, Texas, company supposedly fixed its self-driving software for more than 2 million vehicles, but the U.S. National Highway Traffic Safety Administration still has concerns. Photo courtesy of Tesla

Federal highway safety investigators want Austin-based Tesla to tell them how and why it developed the fix in a recall of more than 2 million vehicles equipped with the company's Autopilot partially automated driving system.

Investigators with the U.S. National Highway Traffic Safety Administration have concerns about whether the recall remedy worked because Tesla has reported 20 crashes since the remedy was sent out as an online software update in December.

The recall fix also was to address whether Autopilot should be allowed to operate on roads other than limited access highways. The fix for that was increased warnings to the driver on roads with intersections.

But in a letter to Tesla posted on the agency's website Tuesday, investigators wrote that they could not find a difference between warnings to the driver to pay attention before the recall and after the new software was released. The agency said it will evaluate whether driver warnings are adequate, especially when a driver-monitoring camera is covered.

The agency asked for volumes of information about how Tesla developed the fix, and zeroed in on how it used human behavior to test the recall effectiveness.

Phil Koopman, a professor at Carnegie Mellon University who studies automated driving safety, said the letter shows that the recall did little to solve problems with Autopilot and was an attempt to pacify NHTSA, which demanded the recall after more than two years of investigation.

“It’s pretty clear to everyone watching that Tesla tried to do the least possible remedy to see what they could get away with,” Koopman said. “And NHTSA has to respond forcefully or other car companies will start pushing out inadequate remedies.”

Safety advocates have long expressed concern that Autopilot, which can keep a vehicle in its lane and a distance from objects in front of it, was not designed to operate on roads other than limited access highways.

Missy Cummings, a professor of engineering and computing at George Mason University who studies automated vehicles, said NHTSA is responding to criticism from legislators for a perceived lack of action on automated vehicles.

“As clunky as our government is, the feedback loop is working,” Cummings said. “I think the NHTSA leadership is convinced now that this is a problem.”

The 18-page NHTSA letter asks how Tesla used human behavior science in designing Autopilot, and the company's assessment of the importance of evaluating human factors.

It also wants Tesla to identify every job involved in human behavior evaluation and the qualifications of the workers. And it asks Tesla to say whether the positions still exist.

A message was left by The Associated Press early Tuesday seeking comment from Tesla about the letter.

Tesla is in the process of laying off about 10% of its workforce, about 14,000 people, in an effort to cut costs to deal with falling global sales.

Cummings said she suspects that CEO Elon Musk would have laid off anyone with human behavior knowledge, a key skill needed to deploy partially automated systems like Autopilot, which can't drive themselves and require humans to be ready to intervene at all times.

“If you're going to have a technology that depends upon human interaction, you better have someone on your team that knows what they are doing in that space,” she said.

Cummings said her research has shown that once a driving system takes over steering from humans, there is little left for the human brain to do. Many drivers tend to overly rely on the system and check out.

“You can have your head fixed in one position, you can potentially have your eyes on the road, and you can be a million miles away in your head,” she said. “All the driver monitoring technologies in the world are still not going to force you to pay attention.”

In its letter, NHTSA also asks Tesla for information about how the recall remedy addresses driver confusion over whether Autopilot has been turned off if force is put on the steering wheel. Previously, if Autopilot was de-activated, drivers might not notice quickly that they have to take over driving.

The recall added a function that gives a “more pronounced slowdown” to alert drivers when Autopilot has been disengaged. But the recall remedy doesn’t activate the function automatically — drivers have to do it. Investigators asked how many drivers have taken that step.

NHTSA is asking Telsa “What do you mean you have a remedy and it doesn’t actually get turned on?” Koopman said.

The letter, he said, shows NHTSA is looking at whether Tesla did tests to make sure the fixes actually worked. “Looking at the remedy I struggled to believe that there’s a lot of analysis proving that these will improve safety,” Koopman said.

The agency also says Tesla made safety updates after the recall fix was sent out, including an attempt to reduce crashes caused by hydroplaning and to reduce collisions in high speed turn lanes. NHTSA said it will look at why Tesla didn't include the updates in the original recall.

NHTSA could seek further recall remedies, make Tesla limit where Autopilot can work, or even force the company to disable the system until it is fixed, safety experts said.

NHTSA began its Autopilot investigation in 2021, after receiving 11 reports that Teslas using Autopilot struck parked emergency vehicles. In documents explaining why the investigation was ended due to the recall, NHTSA said it ultimately found 467 crashes involving Autopilot resulting in 54 injuries and 14 deaths.

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Investment bank opens energy-focused office in Houston

new to hou

Investment bank Cohen & Co. Capital Markets has opened a Houston office to serve as the hub of its energy advisory business and has tapped investment banking veteran Rahul Jasuja as the office’s leader.

Jasuja joined Cohen & Co. Capital Markets, a subsidiary of financial services company Cohen & Co., as managing director, and head of energy and energy transition investment banking. Cohen’s capital markets arm closed $44 billion worth of deals last year.

Jasuja previously worked at energy-focused Houston investment bank Mast Capital Advisors, where he was managing director of investment banking. Before Mast Capital, Jasuja was director of energy investment banking in the Houston office of Wells Fargo Securities.

“Meeting rising [energy] demand will require disciplined capital allocation across traditional energy, sustainable fuels, and firm, dispatchable solutions such as nuclear and geothermal,” Jasuja said in a news release. “Houston remains the center of gravity where capital, operating expertise, and execution come together to make that transition investable.”

The Houston office will focus on four energy verticals:

  • Energy systems such as nuclear and geothermal
  • Energy supply chains
  • Energy-transition fuel and technology
  • Traditional energy
“We are making a committed investment in Houston because we believe the infrastructure powering AI, defense, and energy transition — from nuclear to rare-earth technology — represents the next secular cycle of value creation,” Jerry Serowik, head of Cohen & Co. Capital Markets, added in the release.

Houston cleantech startup Helix Earth lands $1.2M NSF grant

federal funding

Renewable equipment manufacturer Helix Earth Technologies is one of three Houston-based companies to secure federal funding through the Small Business Innovation Research (SBIR) Phase II grant program in recent months.

The company—which was founded based on NASA technology, spun out of Rice University and has been incubated at Greentown Labs—has received approximately $1.2 million from the National Science Foundation to develop its high-efficiency retrofit dehumidification systems that aim to reduce the energy consumption of commercial AC units. The company reports that its technology has the potential to cut AC energy use by up to 50 percent.

"This award validates our vision and propels our impact forward with valuable research funding and the prestige of the NSF stamp of approval," Rawand Rasheed, Helix CEO and founder, shared in a LinkedIn post. "This award is a reflection our exceptional team's grit, expertise, and collaborative spirit ... This is just the beginning as we continue pushing for a sustainable future."

Two other Houston-area companies also landed $1.2 million in NSF SBIR Phase II funding during the same period:

  • Resilitix Intelligence, a disaster AI startup that was founded shortly after Hurricane Harvey, that works to "reduce the human and economic toll of disasters" by providing local and state organizations and emergency response teams with near-real-time, AI-driven insights to improve response speed, save lives and accelerate recovery
  • Conroe-based Fluxworks Inc., founded in 2021 at Texas A&M, which provides magnetic gear technology for the space industry that has the potential to significantly enhance in-space manufacturing and unlock new capabilities for industries by allowing advanced research and manufacturing in microgravity

The three grants officially rolled out in early September 2025 and are expected to run through August 2027, according to the NSF. The SBIR Phase II grants support in-depth research and development of ideas that showed potential for commercialization after receiving Phase I grants from government agencies.

However, congressional authority for the program, often called "America's seed fund," expired on September 30, 2025, and has stalled since the recent government shutdown. Government agencies cannot issue new grants until Congress agrees on a path forward. According to SBIR.gov, "if no further action is taken by Congress, federal agencies may not be able to award funding under SBIR/STTR programs and SBIR/STTR solicitations may be delayed, cancelled, or rescinded."

Mars Materials makes breakthrough in clean carbon fiber production

Future of Fiber

Houston-based Mars Materials has made a breakthrough in turning stored carbon dioxide into everyday products.

In partnership with the Textile Innovation Engine of North Carolina and North Carolina State University, Mars Materials turned its CO2-derived product into a high-quality raw material for producing carbon fiber, according to a news release. According to the company, the product works "exactly like" the traditional chemical used to create carbon fiber that is derived from oil and coal.

Testing showed the end product met the high standards required for high-performance carbon fiber. Carbon fiber finds its way into aircraft, missile components, drones, racecars, golf clubs, snowboards, bridges, X-ray equipment, prosthetics, wind turbine blades and more.

The successful test “keeps a promise we made to our investors and the industry,” Aaron Fitzgerald, co-founder and CEO of Mars Materials, said in the release. “We proved we can make carbon fiber from the air without losing any quality.”

“Just as we did with our water-soluble polymers, getting it right on the first try allows us to move faster,” Fitzgerald adds. “We can now focus on scaling up production to accelerate bringing manufacturing of this critical material back to the U.S.”

Mars Materials, founded in 2019, converts captured carbon into resources, such as carbon fiber and wastewater treatment chemicals. Investors include Untapped Capital, Prithvi Ventures, Climate Capital Collective, Overlap Holdings, BlackTech Capital, Jonathan Azoff, Nate Salpeter and Brian Andrés Helmick.