NHTSA Closes Tesla Model 3/Y Power Steering Investigation After OTA Fix

Federal safety regulators have officially closed the book on a years-long investigation into power steering failures affecting hundreds of thousands of Tesla vehicles. The National Highway Traffic Safety Administration (NHTSA) announced on June 27, 2026 that it ended its engineering analysis into 2023 model year Model 3 and Model Y vehicles — a probe that originally launched back in July 2023 — after a previously issued over-the-air software recall already addressed the root cause.

What happened

The investigation began in July 2023 as a preliminary evaluation covering roughly 280,000 Model 3 and Model Y vehicles from the 2023 model year. At that point, 12 owners had reported either a complete inability to turn the steering wheel or a sudden and unexpected increase in the effort required to steer. By early 2024, NHTSA broadened the scope and elevated the probe to a full engineering analysis to better understand what was driving the reported hardware behavior. At its widest, the investigation covered 376,241 U.S. vehicles.

Why it matters

Power steering loss — especially at low speeds — is a serious safety concern. Heavier steering effort in parking lots, tight turns, or slow-speed maneuvering significantly raises the risk of a crash, since drivers rely on power-assisted steering for precise, low-effort control in exactly those situations. When NHTSA issues an engineering analysis, it's a meaningful escalation that signals the agency is actively considering whether a formal recall demand is necessary. Getting to a resolution without further regulatory pressure, and without requiring owners to make a single service center visit, is a notable outcome.

What this means for EV owners

If you own a 2023 Model 3 or Model Y, the short answer is: you're covered. Tesla deployed a fix via an over-the-air software update — no appointment, no waiting room, no tow truck needed. According to the source, the update was designed to prevent overvoltage breakdown and overstress of motor drive components on the printed circuit board responsible for power steering assist. As long as your vehicle received and installed that update, the underlying defect has been addressed and NHTSA has confirmed it's satisfied with the outcome.

This is a good reminder of why keeping your Tesla's software up to date is one of the most important things you can do as an EV owner. Unlike traditional vehicles where a safety fix requires a physical repair, Tesla's software-first approach means critical updates can reach your car overnight while it sits in your driveway — provided your charging setup is ready to support it. If you're still relying on a slow Level 1 plug-in, upgrading to a proper home charging solution means your car is always topped up and ready to accept updates the moment they roll out. Browse our EV chargers collection to find the right Level 2 home charger for your setup.

And if you're looking to make the most of your 2023 Model 3 or Model Y beyond software updates, check out our full lineup of Model 3 accessories and Model Y accessories to protect and personalize your ride.

"Early last year, a recall was issued for roughly 376,000 vehicles in the U.S. to address a potential failure in the power steering assist feature. The defect could make affected vehicles harder to steer at low speeds, which increased the risk of a crash." — NotaTeslaApp, citing a Reuters report on NHTSA's Office of Defects Investigation

The bottom line

The closure of this investigation is good news for 2023 Model 3 and Model Y owners and reflects a broader pattern of NHTSA wrapping up longstanding Tesla reviews. Earlier in 2026, the safety agency also closed a separate investigation into 2023 Model Y steering wheels detaching from the column, and cleared Tesla's Actually Smart Summon feature as well. That said, NHTSA's scrutiny of Tesla isn't finished entirely — an active engineering analysis into how FSD (Supervised) handles low-visibility and foggy driving conditions remains ongoing. For now, though, if you're behind the wheel of a 2023 Model 3 or Model Y, you can steer with confidence.