Tesla recalls 376,000 vehicles over power steering issues, prompting safety concerns and stock price dip.
At a Glance
- Tesla recalls 376,000 electric vehicles in the U.S. due to power steering assist failure
- Issue could make vehicles harder to steer at low speeds, increasing crash risk
- Tesla shares dropped 3% in mid-day trading following the recall announcement
- Over-the-air software update released in October to address the issue
- Recall follows a year-long NHTSA probe after reports of steering failures
Tesla’s Latest Recall: Power Steering Problems
In a move that’s sure to ruffle some feathers among Tesla devotees and raise eyebrows among skeptics, the electric vehicle giant has announced a recall of 376,000 vehicles in the United States. The culprit? A pesky power steering assist failure that could make these technological marvels harder to steer at low speeds. Because apparently, we needed another reason to be wary of driving in crowded parking lots.
The recall affects 2023 Model 3 sedans and Model Y crossovers equipped with older software. It seems that in Tesla’s relentless pursuit of innovation, they may have overlooked the importance of, you know, being able to steer your car properly. The issue involves potential overstress of motor drive components on the printed circuit board, which is a fancy way of saying “oops, we might have pushed it a bit too far this time.”
TESLA RECALL 🚨 Tesla recalls over 376,000 vehicles due to potential power steering assist problem. https://t.co/wgz5hzD43c pic.twitter.com/9e4i2EjVSa
— News 4 San Antonio (@News4SA) February 22, 2025
The Impact on Tesla’s Stock and Reputation
As news of the recall spread faster than a Tesla Model S Plaid on a drag strip, the company’s stock took a hit. Shares dropped 3% in mid-day trading, adding to a year that’s already seen a 10% decline. It’s almost as if investors aren’t thrilled about the prospect of cars that might decide to play hard-to-steer at any given moment.
This recall isn’t happening in a vacuum. It follows a year-long probe by the National Highway Traffic Safety Administration (NHTSA) after reports of steering failures. Over 50 vehicles were reportedly towed due to the steering issue, which is great news for tow truck drivers but less so for Tesla owners who thought they were buying the future of transportation.
Tesla recalls 376,000 U.S. vehicles (2023 Model 3 & Y) due to power steering assist issues, causing a 3% stock dip. NHTSA's investigation highlights software challenges with potential impacts on future EV technology.https://t.co/KJiYgOyKtx
— ilovetesla.com (@iloveteslacom) February 22, 2025
Tesla’s Response and the Power of Software Updates
In true Tesla fashion, the company’s solution to this hardware problem is… software. An over-the-air update was released in October to address the issue, and as of January 23, 99% of affected U.S. vehicles have installed the update. It’s a bit like trying to fix a broken arm with a really good pep talk, but hey, welcome to the future of automotive repair.
Tesla has identified 3,012 warranty claims and 570 field reports related to the issue, but thankfully, no crash reports. It’s a small comfort, knowing that while your car might decide to play stubborn mule in a parking lot, at least it hasn’t caused any accidents. Yet.
This recall marks Tesla’s second large-scale callback this year, following a January recall of 239,000 vehicles for rear-view camera issues. At this rate, Tesla owners might start to feel like they’re participating in some sort of high-tech game of automotive whack-a-mole.
