The National Highway Traffic Safety Administration (NHTSA) announced on Monday that it would be closing an investigation into Tesla Inc.‘s (NASDAQ:TSLA) “actually smart summon” self-driving feature.



<h2>2.59 Million Vehicles Could’ve Been Affected By Probe</h2>



The probe could have affected over 2.59 million Tesla vehicles over a feature that allows the vehicles to navigate parking lots or move short distances while being constantly monitored by owners via a smartphone app, Reuters reported on Monday. NHTSA said the reported incidents involved minor instances of property damage and no injuries or loss of life.



The incidents took place early in the sessions due to poor visibility. NHTSA also maintained that the closing of the investigation did not mean that safety defects did not exist, the report said, but acknowledged that software updates released by Tesla did not warrant further investigation.



<h2>Tesla’s FSD Criticism</h2>



The technology has been criticized by investor Ross Gerber of Gerber Kawasaki, who has lamented the Full Self-Driving (FSD) system for being only at Level 2 capabilities, according to the Society of Automotive Engineers (SAE).



Interestingly, Pat Tsen, the Deputy Executive Director for Consumer Policy, Transportation, and Enforcement at the California Public Utilities Commission (CPUC), also shared the consensus. The agency maintained that the automaker’s ride-hailing service in the state wasn’t classified as a Robotaxi service, due to the FSD system's Level 2 rating.



Elsewhere, Tesla’s FSD technology faces scrutiny from NHTSA, which moved its investigation to Engineering Analysis, a stage that usually precedes a recall, according to laws. The move prompted Gordon Johnson to criticize Tesla’s valuation. “You cannot build a $1.2T [trillion] robotaxi company on software the federal government is one determination away from forcing off the road,” he said.



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According to Benzinga Edge Rankings, Tesla offers poor Momentum and satisfactory Growth, but fails to provide a favorable price trend in the Short, Medium and Long term.



Price Action: TSLA fell 4.04.% to $365.85 during Pre-market on Monday.



Image credit: Jefferson Graham-USA TODAY NETWORK via Imagn



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The NHTSA has closed its investigation into Tesla's self-driving feature affecting 2.59 million vehicles, citing software updates as a reason. The probe revealed minor property damage incidents but no injuries. Criticism of Tesla's Full Self-Driving system continues, with concerns about its Level 2 capabilities. Tesla's valuation is under scrutiny as the FSD technology faces further NHTSA examination, leading to a 4.04% drop in TSLA stock to $365.85 in pre-market trading.

- The NHTSA announced it is closing an investigation into Tesla's "actually smart summon" feature, which could have impacted over 2.59 million vehicles.  
- The investigation revealed minor property damage incidents occurred due to poor visibility, but no injuries were reported, and recent software updates by Tesla did not warrant further action.  
- Criticism persists regarding Tesla's Full Self-Driving capabilities, with the technology rated at Level 2, leading to concerns about the company's valuation and regulatory scrutiny.

NHTSA Closes Probe Into 2.5 Million Tesla Vehicles Over Self-Driving Concerns