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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Texas City ammonia plant acquired by Yara in $1.3 billion deal

Ammonia Acquisition

Yara North America, a subsidiary of Norwegian fertilizer and ammonia producer Yara International, has agreed to buy an ammonia production plant in Texas City for $1.3 billion.

The seller is GCA Holdings, an affiliate of Texas City-based chemical manufacturer Gulf Coast Ammonia, which is owned by private equity firms Lotus Infrastructure Partners and MB Energy.

The Texas City plant, with an eventual annual capacity of 1.3 million metric tons, is expected to start full production by the end of this year. Yara says the ammonia produced by the plant will serve its own fertilizer production system and its key customers.

During a recent call with analysts and investors, Magnus Ankarstrand, executive vice president and CFO of Yara International, said the plant holds the potential to become one of the company’s most profitable plants. The $1.3 billion purchase price, he added, “is a very attractive entry ticket to ammonia production in the U.S. at a very attractive cost.”

The Texas City plant will add to Yara’s holdings in the Lone Star State, as Yara is the majority owner of an ammonia, hydrogen and nitrogen production plant in Freeport.

Construction of the ammonia plant began in 2020, but technical and infrastructure issues delayed the project. On its website, Gulf Coast Ammonia says the plant represented a $600 million investment.

“Gulf Coast Ammonia is a world-class asset that required disciplined execution across development, financing, construction, and commercial structuring,” Philipp Pletka, managing director of Lotus Infrastructure Partners, says in a news release.

Trexlertown, Pennsylvania-based Air Products, which owns and operates the country’s largest hydrogen pipeline network, will continue to supply hydrogen and nitrogen for the plant under a long-term deal with Yara, according to the release.

However, the news comes two days after Yara International announced that it would no longer be purchasing ammonia assets in the Louisiana Clean Energy Complex (LCEC) from Air Products. In a separate release, Yara said it planned to reallocate funds toward "alternative mature U.S. ammonia investment opportunities with more competitive returns."

Houston hypersonic engine company lands $91M to accelerate production

Clean Speed

Houston-based Venus Aerospace has closed a $91 million Series B round and plans to scale the production of its hypersonic engine.

The round was led by Houston-based Mercury Fund with participation from Lockheed Martin Ventures, MESH, PEAK6, Draper Associates, Starboard Star Venture Capital, Green Sands Equity and other investors, according to a news release.

The investment comes about a year after Venus completed the first U.S. flight test of its high-thrust rotating detonation rocket engine (RDRE). The engine is expected to enable vehicles to travel four to six times the speed of sound from a conventional runway and is about 15 percent more efficient than traditional alternatives, according to the company.

Venus Aerospace says the latest round of funding will allow it to move the RDRE from demonstration to deployment and meet customer requirements for the near-term defense and space industries. The company says that the reusable RDRE is designed with a "common propulsion architecture" that can work for multiple industries and mission types.

“This financing marks an important step in moving Venus from breakthrough demonstration to scaled capability,” Sassie Duggleby, co-founder and CEO, said in the news release. “Our customers need propulsion systems that go farther, can be produced reliably and are built on supply chains they can trust. We are advancing that capability with American engineering and manufacturing talent to strengthen U.S. defense, expand space access and support the future of high-speed flight.”

Venus Aerospace raised a $20 million Series A in 2022, led by Wyoming-based Prime Movers Lab. At the time, the company said it would put the funding toward three main technologies: a next-generation rocket engine, aircraft shape and leading-edge cooling system.

The company also picked up an investment from Lockheed Martin Ventures, the investment arm of aerospace and defense contractor Lockheed Martin, in November 2025—in addition to funding from other investors over the years.

“Since our initial investment, Venus has progressed very quickly in its technology development," Chris Moran, vice president and general manager of Lockheed Martin Ventures, added in the release. "Our reinvestment in Venus recognizes Venus’ accomplishments to date and focus on speed to manufacture, cost management and reduction of supply chain constraints. Venus is working effectively to position its propulsion system for the production scale required by defense programs.”

"Venus is exactly the kind of company Houston capital should be backing," Blair Garrou, co-founder and managing partner at Mercury Fund, added in the release. "It combines multiple frontier technologies, domestic manufacturing and clear commercial and national security relevance. We believe this team is positioned to lead an important new chapter in defense and space, and we are proud to support a company building breakthrough technology here in Texas."

Venus Aerospace and Houston clean tech startup Vaulted Deep were also named to the World Economic Forum's Technology Pioneers community earlier this summer.

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This article first appeared on InnovationMap.com.

14 climatech startups join Greentown Houston in first half of 2026

green team

Climatech incubator Greentown Labs reports that 14 startups have joined its Houston community so far this year.

The companies are among 30 new startups to have joined Greentown Houston and Greentown Boston in 2026. Four of the companies are headquartered in Houston.

The startups are working on a range of "hydrogen-powered heavy-duty transport to AI-driven grid interconnection," according to Greentown.

The local startups that joined Greentown Houston include:

  • Houston-based Focis AI, which transforms industrial laser scans into structured asset intelligence to automatically identify, classify and map components in refineries and plants
  • Houston-based Iron Lattice, which develops next-generation memory technology for AI and high-performance computing that improves energy efficiency, endurance and scalability while remaining compatible with existing semiconductor manufacturing
  • Houston-based Orbital Arc, which is developing a new ion engine designed to improve the efficiency and scalability of spacecraft propulsion from low Earth orbit to deep space
  • Houston-based Sustain Energy LLC, which delivers cleaner, lower-cost fuel to industrial customers in pipeline-absent, underserved markets, cutting their energy costs and emissions with no infrastructure investment on their end

Other startups from around the world joined the Houston incubator in the same time period, including:

  • Ankara-based AIS Field, which develops robotic, AI-assisted non-destructive inspection systems, including submersible tank and boiler crawlers
  • San Francisco-based Armada AI, which builds rapidly deployable modular and edge data centers that run on local, stranded, or renewable power
  • San Francisco-based Armeta, which turns complex engineering drawings and legacy documentation into structured, usable data
  • Pittsburgh-based Atlas Robotics, which develops a Physical AI platform that powers autonomous material-handling robots and AI-guided forklifts
  • Ghana-based Cocoa Potash, which transforms high-emissions agricultural waste from cocoa, coconut, and palm-nut into organic potash, fertilizer and renewable energy
  • Israel-based Criaterra, which produces low-carbon, cement-free building materials
  • Italy-based ETAK, which manufactures modular reactors that convert solid waste into clean syngas
  • Kenya-based FelixFusion, which uses its Felix platform to model every grid connection point, including capacity, upgrade costs, and constraints
  • San Diego-based Gemini Energy, which builds next-generation fuel cells for data-center power
  • Tokyo-based Hibot, which develops robotic systems for inspecting and maintaining infrastructure in hazardous, hard-to-access environments
  • Austin-based Sheetak, which designs and manufactures thermoelectric coolers, generators, and assemblies for solid-state cooling and energy harvesting
  • The Netherlands-based ToPerform, which makes AI-powered, non-intrusive fouling sensors that monitor pipelines around the clock and predict the optimal cleaning time

Another 16 startups joined Greentown's Boston incubator. See the full list of new members here.

More than 100 startups joined Greentown last year, according to an end-of-year reflection shared by Greentown CEO Georgina Campbell Flatter. Read more about them here.