NHTSA Closes Probe Into Tesla Model 3 and Y Steering Failures

The National Highway Traffic Safety Administration has closed its investigation into power steering loss affecting 376,241 Tesla Model 3 and Model Y vehicles from the 2023 model year.

NHTSA ends engineering analysis after software recall. The federal safety regulator announced the closure on June 27, 2026. The decision follows an over-the-air recall Tesla issued last year to address the potential failure in the power steering assist feature.

The recall covered roughly 376,000 vehicles in the U.S. and targeted a defect that could make affected vehicles harder to steer at low speeds. This increased the risk of a crash. Tesla deployed the fix via software update without requiring a service center visit.

Investigation began with 12 owner reports in 2023. NHTSA launched a preliminary evaluation in July 2023 covering roughly 280,000 2023 model year Teslas. Owners had reported being unable to turn the steering wheel or experiencing a sudden increase in steering effort.

By early 2024 the agency expanded the probe and upgraded it to an engineering analysis. The investigation examined alleged hardware behavior in the affected vehicles.

Software update prevents overvoltage breakdown. According to a Reuters report cited by Not a Tesla App, NHTSA's Office of Defects Investigation closed the case because Tesla had already deployed the fix. The over-the-air update prevents overvoltage breakdown and overstress of motor drive components on the printed circuit board.

Tesla noted the recall was not issued as a direct response to the ongoing government investigation. The probe remained open when the software update began rolling out to vehicles.

Latest in series of closed NHTSA reviews for Tesla. The steering probe closure follows two other recent regulatory greenlights. Earlier this spring NHTSA closed an investigation into 2023 Model Y steering wheels detaching from the steering column while driving. Regulators also cleared Tesla's Actually Smart Summon feature around the same time.

That feature received a performance boost with the latest Full Self-Driving software updates. Tesla continues to face active scrutiny, however. NHTSA is currently investigating the low-vision performance of FSD (Supervised) after upgrading that probe to an engineering analysis over concerns about handling in fog or low-visibility conditions.

Owners of the 2023 Model 3 and Model Y can now consider the power steering matter officially resolved.