June 27, 2026 at 11:36 AM 2 min readtechdeveloping

NHTSA Closes Tesla Power Steering Probe Into 376,000 Model 3 and Model Y EVs

NHTSA Resolution:

The U.S. National Highway Traffic Safety Administration has officially concluded its engineering analysis regarding the loss of power steering functionality in approximately 376,000 Tesla Model 3 and Model Y vehicles from the 2023 model year. Regulators initiated the review following reports of steering control failures that emerged during 2023, prompting significant safety concerns for owners of these electric vehicles.

Regulatory Background:

The investigation stems from a preliminary evaluation launched in July 2023, which sought to determine the cause of recurring steering assist failures. Tesla subsequently addressed the software-related defect through an over-the-air recall implemented in early 2025, which provided a corrective patch for the affected steering assist systems.

Impact and Outcome:

The closure of this probe signifies that the federal oversight body is satisfied with the efficacy of the software-based remedy deployed across the fleet. While the primary focus remains on the domestic U.S. market, Tesla owners in India often monitor these global regulatory developments, as local safety standards frequently align with international protocols for imported and high-end vehicle technologies.
Pulse Intelligence
AI Analysis
  • The NHTSA opened a formal investigation in July 2023 after receiving multiple reports of steering assist issues.
  • Tesla issued an over-the-air software update in early 2025 to rectify the reported steering system defects.
  • Tesla will likely face increased scrutiny regarding software-defined vehicle safety as a result of the high volume of affected units.
  • The closure of the investigation provides regulatory clarity for the 2023 model year lineup in the North American market.

No direct market impact on Indian bourses.