Tesla recalls 380,000 vehicles

Tesla said on Friday it was recalling nearly 380,000 vehicles in the United States due to a power steering assist failure that could increase steering effort, particularly at low speeds, potentially raising the risk of a crash.

The recall follows a more than one-year-long probe by the National Highway Traffic Safety Administration after some Tesla owners reported steering failures, with some unable to turn the wheel while others cited increased effort. More than 50 vehicles were allegedly towed due to the issue, NHTSA said last year.

Reuters reported in late 2023 that tens of thousands of owners had experienced premature failures of suspension or steering parts since 2016, citing Tesla documents and interviews with customers and former employees.

In a filing with NHTSA, Tesla said some 2023 Model 3 sedans and Model Y crossovers running older software could face an overvoltage breakdown, potentially overstressing motor drive components on the printed circuit board.

Tesla said that if this overstress condition occurs while the vehicle is in motion, the steering remains unaffected, and a visual alert is triggered. But once the vehicle stops, the steering assist may fail and remain disabled when it moves again.

As of January 10, Tesla has identified 3,012 warranty claims that are related to or may be related to the condition. It is not aware of any crashes or deaths related to the condition.

The company has released an over-the-air software update to fix the issue, it said.

This recall marks the automaker’s second large recall this year, following a January recall of about 239,000 vehicles due to malfunctioning rear-view cameras.

Tesla shares were slightly lower in premarket U.S. trading. The stock has declined around 10% this year, after a strong 2024.