NHTSA Closes 2022 Probe into 695,000 Tesla Vehicles, Citing Low Braking Hazard
TSLA sits 47% above its 52-week low of $288.77.
Summary
The U.S. National Highway Traffic Safety Administration (NHTSA) has closed its 2022 preliminary evaluation into 695,000 Tesla Model 3 and Model Y vehicles over unexpected deceleration. The regulator cited a low demonstrated hazard to drivers and a substantial drop in incident reports following Tesla's software updates in early 2022. This decision removes a significant regulatory overhang and potential reputational risk for the company, validating its prior actions to address the issue. This follows the recent closure of a separate NHTSA probe into steering control issues.
At the time of this announcement, TSLA was trading at $423.38 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $1.6T. The 52-week trading range was $288.77 to $498.83. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.