Tesla NASDAQ:TSLA is no longer facing a federal investigation into reports of unexpected vehicle deceleration after U.S. auto safety regulators concluded the issue posed a limited risk.
The U.S. National Highway Traffic Safety Administration (NHTSA) closed its review of about 695,000 Model 3 and Model Y vehicles, saying software updates introduced by Tesla in early 2022 were followed by a sustained decline in reported incidents. The agency said reports fell from roughly 300 cases when the inquiry began to 45 in 2024, 19 in 2025, and three so far in 2026, according to a Thursday regulatory filing.
NHTSA said the reported events did not alter vehicles' lane positioning or materially reduce following distance in a way that would likely result in a crash. Based on its findings, the agency determined the issue presented a low demonstrated hazard to motorists.
The action follows another recent regulatory development for Tesla. Last week, NHTSA also ended an expanded investigation involving an estimated 376,241 Model 3 and Model Y vehicles over reports of steering control loss after reviewing the matter.