Stock Markets June 27, 2026 04:54 AM

U.S. Safety Agency Closes Engineering Probe into Tesla Power-Steering Reports

NHTSA ends investigation after Tesla issued a software-based recall affecting roughly 376,000 vehicles

By Leila Farooq
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On June 27, U.S. safety regulators said they have closed an engineering analysis into reported power steering loss in certain Tesla Model 3 and Model Y vehicles following a large recall and an over-the-air software fix deployed by the automaker. The probe had covered approximately 376,241 vehicles from the 2023 model year and was opened after owners reported increased steering effort or inability to turn the wheel.

U.S. Safety Agency Closes Engineering Probe into Tesla Power-Steering Reports
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Key Points

  • NHTSA closed an engineering analysis into loss-of-steering reports affecting about 376,241 2023 Model 3 and Model Y vehicles.
  • Tesla issued a recall for approximately 376,000 U.S. vehicles in early 2025 and released an over-the-air software update aimed at preventing overvoltage and motor drive component overstress.
  • The probe began as a preliminary evaluation in July 2023 and was upgraded to an engineering analysis in early 2024 before being closed after Tesla’s recall.

On June 27, U.S. safety authorities announced the closure of an engineering analysis into reports that some Tesla vehicles experienced loss of power steering. The National Highway Traffic Safety Administration (NHTSA) said the inquiry covered about 376,241 Tesla Model 3 and Model Y cars from the 2023 model year.

NHTSA first initiated a preliminary evaluation in July 2023 following owner reports alleging either an inability to turn the steering wheel or a marked rise in the effort required to do so. The agency elevated that review to an engineering analysis in early 2024 to probe the alleged defect in greater depth.

In early 2025, Tesla issued a recall affecting roughly 376,000 vehicles in the United States. The recall addressed a failure of the power steering assist feature that could increase steering effort, particularly at low speeds, and thereby raise the risk of a crash. At the time Tesla said the recall was not prompted by NHTSA’s open investigation.

The recall explained that Tesla had deployed an over-the-air software update intended to prevent overvoltage breakdown and to stop overstress of motor-drive components on a printed circuit board. According to the recall description, those conditions had been associated with the increase in steering effort reported by some owners.

Following Tesla’s recall and the related software remedy, NHTSA’s Office of Defects Investigation concluded its engineering analysis and closed the probe. The agency did not add further public details in the closure announcement beyond the link between the automaker’s corrective action and the agency’s decision to end the formal engineering review.

The sequence of events for the covered vehicles therefore spans an initial agency review beginning in mid-2023, an upgrade to engineering analysis in early 2024, and a manufacturer recall with an over-the-air software mitigation implemented in early 2025. NHTSA’s closure reflects that action by the company as the basis for ending its engineering-level inquiry.


Contextual note - The information in this report is limited to NHTSA’s public statements about the investigation, the number and model years of vehicles involved, and Tesla’s recall and software update as described by the company.

Risks

  • Increased steering effort or loss of power steering can raise crash risk, particularly at low speeds - this primarily impacts the automotive and vehicle safety sectors.
  • Uncertainty remains in public disclosures because NHTSA’s closure statement provided limited detail beyond linking the agency’s action to Tesla’s recall, leaving some unanswered questions for regulators and investors in the automotive supply chain.
  • The need for an over-the-air fix highlights dependency on software remedies for hardware-related stress issues, with implications for auto manufacturers, suppliers of electronic motor drive components, and the broader automotive electronics market.

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