US safety agency closes power steering probe into 376,000 Tesla EVs

• NHTSA opened a preliminary evaluation in July 2023 after owners reported loss of steering control or increased steering effort, later upgrading it to an engineering analysis in early 2024
• Tesla recalled 376,000 vehicles in early 2025 to fix a power steering assist failure caused by overvoltage breakdown in motor drive components, though the company stated the recall was not in response to the NHTSA probe
• The defect made vehicles harder to steer, particularly at low speeds, raising crash risk before being addressed via software update

US Safety Regulators Close Tesla Power Steering Investigation Following Recall

The National Highway Traffic Safety Administration (NHTSA) closed its investigation into power steering defects affecting approximately 376,000 Tesla vehicles on Saturday, following the company's recall and corrective action.

Key Details:

The probe covered 376,241 Model 3 and Model Y vehicles from the 2023 model year. NHTSA initially opened a preliminary evaluation in July 2023 after owners reported loss of steering control, inability to turn the steering wheel, or increased steering effort required. The investigation was elevated to an engineering analysis in early 2024 for deeper examination of the alleged defect.

Tesla's Response:

In early 2025, Tesla recalled approximately 376,000 vehicles in the U.S. due to power steering assist feature failures that made vehicles harder to steer, particularly at low speeds, increasing crash risk. Tesla deployed an over-the-air software update to prevent overvoltage breakdown and overstress of motor drive components on the printed circuit board—the root cause of increased steering effort.

Notably, Tesla stated the recall was not in direct response to NHTSA's investigation, which remained open at the time.

Market Implications:

The probe closure represents a positive development for Tesla, removing regulatory uncertainty around these models. The resolution through software updates demonstrates Tesla's ability to address safety concerns remotely without physical repairs, though the incident highlights ongoing quality control challenges. The NHTSA's Office of Defects Investigation determined Tesla's corrective action sufficient to close the engineering analysis.

This development may provide modest support for Tesla's stock by eliminating a regulatory overhang affecting nearly 376,000 vehicles.