NHTSA Closes Tesla Power Steering Probe After Recall Fix

The National Highway Traffic Safety Administration (NHTSA) said on Saturday it has closed a long-running investigation into Tesla Inc. (NASDAQ:TSLA) vehicles over reports of power steering loss after the issue was addressed through a prior recall.

Engineering Analysis Ends After Multi-Year Safety Review

The U.S. safety regulator ended its engineering analysis covering about 376,241 Model 3 and Model Y vehicles from the 2023 model year.

The probe began in July 2023 as a preliminary evaluation after drivers reported difficulty turning the steering wheel or increased steering effort, raising crash-risk concerns. It was upgraded in early 2024 for a deeper technical review.

Tesla recalled the affected vehicles in early 2025 due to a failure in the power steering assist system that could increase steering effort, particularly at low speeds. Regulators said the condition raised the risk of a crash.

The company implemented an over-the-air software update intended to prevent overvoltage breakdown and overstress of motor drive components on the printed circuit board, which were linked to the steering issue.

Earlier, Elon Musk said Tesla Model 3 and Model Y vehicles have the highest U.S.-made content, according to Cars.com rankings.

Trading Metrics

Tesla has a market capitalization of $1.19 trillion, a 52-week high of $498.83 and a 52-week low of $288.77.

The large-cap stock has gained 19.53% over the past 12 months.

Analyst updates tracked in June showed mixed sentiment on Tesla.

Benzinga’s Edge Stock Rankings indicates TSLA stock has a negative price trend across all time frames.

Photo Courtesy: Mijansk786 on Shutterstock.com

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.