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Tesla has issued a recall for nearly 380,000 vehicles in the United States due to a power steering assist failure. The defect could make steering more difficult, particularly at low speeds, potentially increasing the risk of accidents. The recall follows a year-long investigation by the National Highway Traffic Safety Administration (NHTSA) after Tesla owners reported steering issues.
What’s Causing the Issue?
According to Tesla’s report to the NHTSA, some 2023 Model 3 sedans and Model Y crossovers running on older software may experience overvoltage that could overstress motor drive components on the circuit board. If this happens while the vehicle is in motion, the steering remains functional, but a visual alert appears on the dashboard. However, once the vehicle comes to a stop, the power steering assist may turn off and remain disabled when the car starts moving again.
The recall decision was influenced by multiple complaints from Tesla owners who struggled to steer their vehicles. Some reported steering failures, while others experienced increased steering effort, making it difficult to maneuver. Over 50 vehicles were allegedly towed due to this issue, as noted by NHTSA in 2023.
How Is Tesla Fixing the Problem?
Tesla has released an over-the-air (OTA) software update to fix the issue. This means affected vehicles will receive the update remotely, and no physical repairs are required at Tesla service centers.
Have There Been Any Accidents?
As of January 10, 2025, Tesla has identified 3,012 warranty claims related to the problem but has not reported any crashes, injuries, or deaths caused by the defect.
Tesla’s Recent Recalls
This is Tesla’s second major recall in 2025. In January, the company recalled around 239,000 vehicles due to rear-view camera malfunctions that could increase the risk of collisions.
Tesla has faced several recalls in the past due to software and hardware-related issues. In late 2023, reports indicated that tens of thousands of Tesla owners had experienced premature failures in their vehicles’ suspension and steering components since 2016.
Impact on Tesla Stock
Following the recall announcement, Tesla shares dipped slightly in pre-market U.S. trading. The stock has already fallen about 10% this year, following a strong performance in 2024.
Despite these challenges, Tesla continues to release software updates and improve vehicle performance, ensuring customer safety while addressing concerns raised by regulators and users.
