Tesla Is Under NHTSA Scrutiny for 'Phantom Braking' Issues At High Speeds

Tesla Inc’s TSLA electric cars are being reviewed by the National Highway Traffic Safety Administration (NHTSA) for "phantom braking" issues, Bloomberg News reported.

What Happened: The transport safety agency is reviewing complaints related to Tesla cars that suddenly brake at high speeds.

NHTSA is reviewing the complaints through its risk-based evaluation process, the report said, citing the agency.

“This process includes discussions with the manufacturer, as well as reviewing additional data sources, including Early Warning Reporting data. If the data show that a risk may exist, NHTSA will act immediately.”

See Also: In A First, Tesla Model S Driver Charged With Vehicular Manslaughter Over Fatal 2019 Crash Involving Autopilot

Why It Matters: Tesla on Tuesday recalled nearly 54,000 of its electric cars related to its driver-assistance feature, though none of the cars need to be taken to a repair shop.

The Elon Musk-led company has reportedly already disabled the feature in its driver assistance system that allowed cars to slowly roll through stop signs when no other vehicles or pedestrians are in view. 

NHTSA is also investigating Tesla’s Autopilot and in-dash video game systems amid heightened scrutiny of the electric vehicle maker. 

TSLA Price Action: Tesla stock closed 2.75% lower at $905.66 a share on Wednesday. The stock is down 24.5% year-to-date.

Photo courtesy of Tesla.