* NHTSA finds no defect in Tesla's pedal misapplication

claims

* Tesla's regenerative braking common in electric

vehicles, NHTSA says

* Petition sought recall of Tesla vehicles produced since

2013

(Adds background in paragraphs 2,11-12)

March 20 (Reuters) - The U.S. auto safety regulator on

Friday rejected a petition seeking a sweeping recall of about

2.26 million Tesla vehicles, saying it had found no

evidence of a safety-related defect.

The decision removes the immediate risk of a large-scale

recall for Tesla, but regulatory overhang remains as authorities

continue to scrutinize its Full Self-Driving driver-assistance

system.

A petition in March 2023 alleged Tesla vehicles could

increase the risk of pedal misapplication, potentially leading

to unintended acceleration due to differences in controls such

as one-pedal driving.

NHTSA said it found no evidence of a defect or safety risk,

citing very few relevant incidents and data showing vehicles

responded as intended.

Tesla did not immediately respond to a Reuters request for

comment.

The petition had called for a recall of all Tesla vehicles

produced since 2013 and proposed safeguards such as requiring

drivers to apply the brake pedal before stopping.

NHTSA said Tesla's use of regenerative braking, or

"one-pedal driving," is common across electric vehicles and not

unique to the company.

The agency identified only a handful of crashes potentially

linked to the issue and said vehicle data showed cars responded

appropriately to driver inputs, adding there was no evidence the

proposed fix would have prevented such incidents. It said it

would continue to monitor any new safety information.

Meanwhile, the regulator on Thursday escalated its probe

into 3.2 million Tesla vehicles with Full Self-Driving (FSD)

driver assistance on concerns the system may fail to detect or

warn drivers in poor visibility conditions.

NHTSA first opened a preliminary evaluation into the

automaker's FSD software in October 2024 in 2.4 million

vehicles. The agency is now opening an engineering analysis, a

required step before it can seek a recall.

Tesla said on Friday that the Dutch regulator, RDW, is

reviewing its submission for its FSD system and is expected to

grant approval in the Netherlands around April 10.

The company added the approval could pave the way for

recognition across Europe, with potential EU-wide clearance

anticipated this summer.

(Reporting by Akash Sriram in Bengaluru; Editing by Anil

D'Silva)