NHTSA closes Tesla power steering probe after recall fix

1 min read Updated on 28 Jun 2026, 12:26 PM

Reviewed by

Jubin VScanX News Team

AI Summary

NHTSA closed its investigation into Tesla's power steering loss after the company issued a recall fix for 376,241 Model 3 and Model Y vehicles. The recall addressed a power steering assist failure that increased crash risk. Tesla resolved the issue with an over-the-air software update.

*this image is generated using AI for illustrative purposes only.

The National Highway Traffic Safety Administration (NHTSA) has closed its investigation into Tesla Inc. vehicles regarding power steering loss after the issue was addressed through a prior recall. The regulator concluded the engineering analysis covering approximately 376,241 Model 3 and Model Y vehicles from the 2023 model year. The closure follows Tesla's recall action earlier in 2025, which aimed to mitigate the risk of increased steering effort and potential crashes.

The investigation began in July 2023 as a preliminary evaluation after drivers reported difficulty turning the steering wheel or increased steering effort. It was upgraded in early 2024 for a deeper technical review. Tesla recalled the affected vehicles due to a failure in the power steering assist system. The company implemented an over-the-air software update to prevent overvoltage breakdown and overstress of motor drive components on the printed circuit board, which were linked to the steering issue.

Trading Metrics

Tesla has a market capitalization of $1.19 trillion. The stock has gained 19.53% over the past 12 months. The 52-week high is $498.83, and the 52-week low is $288.77.

Analyst Ratings

Analyst updates tracked in June showed mixed sentiment on Tesla.

Analyst Firm	Rating Change	Previous → Current Rating	Price Target Change
GLJ Research	Reiterates	Sell → Sell	$24.86 → $24.86
JPMorgan	Upgrade	Underweight → Neutral	$145 → $475
TD Cowen	Reiterates	Buy → Buy	$490 → $490

Will the closure of this investigation improve consumer confidence and potentially boost Tesla's sales figures for the remainder of the year?

How might this resolution influence NHTSA's approach to future Tesla-related safety probes?

Could the successful software fix for this issue set a precedent for handling similar technical defects in other EV manufacturers?

TSLA Stock Performance

Tesla's stock has seen a double-digit percentage decline over the past month. During this period, the stock reached a high of $442.10 per share. In the after-hours trading session on Thursday, Tesla traded at $374.40 per share, a decline of 0.19%. According to Benzinga Edge Rankings, Tesla provides excellent Growth but poor Value and Momentum, with an unfavorable price trend in the Short, Medium, and Long term.

Strategic Commentary and New Models

In a post on social media platform X, Gerber criticized Musk's push toward AI and chip manufacturing while placing the development of new EVs on the back burner. "Maybe Tesla should consider selling EVs again…. It’s a wonderful business," Gerber stated. Despite the critique, Tesla is reportedly mulling the development of an affordable EV targeting the Chinese market, with potential sales in the U.S. Musk has also hinted at another possible new model to boost its aging lineup, which currently includes the Model 3, Model Y, and Cybertruck.

Investor Moves and Industry Developments

Gerber recently expressed admiration for Slate Auto, a company backed by billionaire Jeff Bezos. Slate Auto has touted its modular, ultra-customizable EV pickup truck, which offers a range of 201 miles in its base configuration. "People will totally love this truck," Gerber said, noting the vehicle will retail for close to $25,000 for the base variant. Separately, investor Gary Black of The Future Fund LLC dismissed rumors that Musk is deliberately holding back Tesla's Robotaxi ramp to induce a merger with Space Exploration Technologies Corp. following its $86 billion IPO.