Tesla Recalls 376,000 Model 3 and Model Y Vehicles Over Power Steering Defect

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Steering Assist Failure Could Increase Risk of Accidents at Low Speeds

Tesla has initiated a massive recall affecting approximately 376,000 Model 3 and Model Y vehicles in the United States due to a critical power steering issue. The recall targets 2023 models equipped with an electronic power-assisted steering system (EPAS) that may experience power loss under specific conditions, potentially increasing the risk of accidents, particularly at lower speeds.

According to the National Highway Traffic Safety Administration (NHTSA), the issue stems from excessive stress on the circuit board within the EPAS, which may cause it to fail when the vehicle accelerates after a stop. This could result in drivers struggling with increased steering resistance, making maneuvering more difficult, especially in urban traffic or parking situations.

Tesla became aware of the problem in December 2023 following a surge in customer complaints. The company launched an internal investigation and determined that the affected vehicles, running software versions prior to 2023.38.4, required an over-the-air (OTA) update to rectify the issue. The automaker voluntarily initiated the recall in January 2024, affecting all impacted markets.

While Tesla has confirmed 3,012 warranty claims and 570 field reports linked to this defect, no accidents, injuries, or fatalities have been reported. Owners will receive official recall notifications by March 25, and Tesla has already begun deploying software updates to affected vehicles to mitigate the problem.

Following the recall announcement, Tesla's stock dropped by 4.68%, closing at $337.80 per share. The company's shares have been under pressure, experiencing a nearly 10% decline since the beginning of the year, despite a strong 2024 performance.

In a separate issue, Italian regulators have launched an investigation into Tesla and other automakers over alleged misleading claims about electric vehicle performance. Authorities are scrutinizing information related to real-world driving range, battery degradation over time, and warranty limitations, raising further concerns for EV manufacturers in the global market.

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