The National Highway Traffic Safety Administration (NHTSA) has closed its four-year investigation into reports of unexpected braking in Tesla vehicles, concluding there was no demonstrated pattern of crashes or significant safety risk that would justify a recall. The decision ends one of the agency’s longest-running reviews of Tesla’s driver-assistance technology and removes another regulatory overhang for the electric-vehicle maker as it continues expanding its software-driven autonomous driving capabilities.

The investigation, formally known as Preliminary Evaluation PE22002, covered approximately 695,000 Tesla Model 3 and Model Y vehicles from the 2021 and 2022 model years. It was launched in February 2022 after hundreds of owners reported sudden, unexplained braking while using Autopilot, Full Self-Driving, or Traffic-Aware Cruise Control, a phenomenon that became widely known as “phantom braking.”

Drivers reported vehicles unexpectedly slowing by 10 to 20 miles per hour over one to three seconds, often while traveling at highway speeds and with no visible obstacle ahead. Many owners said the sudden deceleration startled surrounding motorists and created the potential for rear-end collisions.

Consumer complaints rose rapidly during the investigation. NHTSA had received 99 reports by the end of 2021, a figure that climbed to 314 complaints by the time regulators formally opened the probe in early 2022.

After reviewing years of field data, software updates and customer reports, NHTSA concluded that the braking events presented only a low demonstrated safety risk. The agency said it found no crashes, injuries or fatalities directly linked to the reported incidents throughout the investigation.

One of the agency’s most significant findings was the dramatic decline in complaints following Tesla’s software updates.

According to NHTSA, reported phantom-braking incidents fell from their 2022 peak to just 45 complaints during 2024, 19 complaints in 2025, and only three reports during the first half of 2026. Regulators said the trend closely followed a series of over-the-air software updates Tesla released beginning in 2022 to improve how its driver-assistance systems interpret surrounding traffic conditions.

Unlike traditional automakers that often require dealership visits for repairs, Tesla routinely distributes software improvements remotely to vehicles already on the road. Regulators noted that approach appeared to significantly reduce the frequency of reported braking events without requiring a physical recall.

NHTSA also examined the technology behind the issue.

Investigators found the complaints coincided with Tesla’s 2021 transition from radar-and-camera sensor fusion to a camera-only “Tesla Vision” system. By eliminating forward radar and relying entirely on cameras and artificial intelligence, Tesla adopted an approach that differs from many competing autonomous-driving developers.

According to the agency, the vision-only system occasionally misinterpreted certain driving situations, resulting in unnecessary braking events. Although NHTSA stopped short of declaring the design defective, its report represents one of the clearest acknowledgments by a federal regulator that Tesla’s transition away from radar played a role in the complaint pattern.

The broader debate over autonomous driving technology continues throughout the automotive industry.

While Tesla argues that cameras combined with advanced artificial intelligence ultimately provide safer and more scalable autonomous driving than radar-based systems, several competitors continue relying on combinations of cameras, radar and lidar sensors to create redundant safety layers.

The closure of the phantom-braking investigation does not end Tesla’s regulatory scrutiny.

NHTSA emphasized that closing a preliminary evaluation does not mean a safety defect never existed and retains the authority to reopen the investigation if future evidence warrants additional action. Tesla also continues facing legal challenges outside the United States, including a 2025 class-action lawsuit in Australia involving similar phantom-braking allegations.

The decision follows several other recent regulatory developments involving Tesla. NHTSA recently closed its investigation into power-steering failures affecting approximately 376,000 Model 3 and Model Y vehicles after Tesla addressed the issue through a software update. Regulators have also concluded a separate review involving roughly 2.5 million vehicles equipped with Tesla’s remote vehicle movement feature.

Other investigations remain ongoing, including NHTSA’s special crash investigation into a Tesla Model 3 that struck a home in Katy, Texas, while operating with advanced driver-assistance technology.

For Tesla, the closure of the phantom-braking investigation removes another potential legal and financial risk as the company continues expanding autonomous driving features across its vehicle lineup. Coming on the same day Tesla reported stronger-than-expected quarterly deliveries, the regulatory decision provides another measure of reassurance for investors as the company pushes further toward a software-centered future.

JBizNews Desk | Washington, D.C.

© JBizNews.com All Rights Reserved. Reproduction or distribution without written permission is prohibited.