Tesla received a cease-and-desist letter from US agency over Model 3 safety claims - CNBC

Tesla Model 3

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The U.S. National Highway Traffic Safety Administration (NHTSA) has pulled Tesla up on claims regarding the safety of its Model 3 sedan.

NHTSA Chief Counsel Jonathan Morrison sent Tesla CEO Elon Musk a cease-and-desist letter in October last year to say it had become aware of "misleading statements" made by the company about the vehicle's safety rating.

The agency's main contention was with Tesla's claim in a blog post that month that NHSTA tests showed the Model 3 has "the lowest probability of injury of all cars the safety agency has ever tested."

The NHTSA said in the letter, which was posted on the legal transparency website PlainSite, that it had also referred the matter to the Federal Trade Commission's Bureau of Consumer Protection.

It said it was "not the first time" Tesla had disregarded NHTSA guidelines "in a manner that may lead to consumer confusion and give Tesla an unfair market advantage."

The news was first reported by Bloomberg. Tesla, the NHTSA and the FTC were not immediately available for comment when contacted by CNBC.

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