Tesla cleared by NHTSA for in-car gaming feature

Federal regulators have closed an investigation into Tesla for allowing in-dash gaming while its vehicles were moving.

The U.S. National Highway Traffic Safety Administration launched the investigation in late 2021 after discovering video games could be seen and played on the center screen even while the vehicle was in motion. The investigation covered more than 580,000 Tesla vehicles.

Tesla shares were up 3% following the news that NHTSA had closed its probe.

Tesla disabled the on-the-move passenger play feature via an over-the air software update after discussing the matter with officials. However, NHTSA continued its investigation. At the time, NHTSA reiterated that the Vehicle Safety Act bars companies from selling cars that pose significant safety risks, including from distracted driving.

Within a month of the software update, Tesla reported 97% of vehicles had completed the update.

NHTSA said in its most recent update that no safety-related defect exists. The agency said it could take further action if warranted, such as finding a future safety-related defect.