The National Highway Traffic Safety Administration has officially closed its engineering analysis into power steering loss affecting approximately 376,241 Tesla Model 3 and Model Y vehicles from the 2023 model year. The closure, announced June 27, 2026, follows Tesla's over-the-air software recall that addressed the root cause — and a measurable decline in owner complaints afterward.
The investigation had a long runway. NHTSA opened a preliminary evaluation in July 2023 after reports surfaced of steering control loss — particularly at low speeds — in Model 3 and Model Y vehicles. The agency upgraded the probe to a formal engineering analysis (EA24001) in February 2024 as it dug deeper into the defect. According to NHTSA's findings, the issue stemmed from an overvoltage breakdown that could overstress motor drive components on the printed circuit board of the electronic power steering (EPS) assist system.
Tesla's remedy came via software, not a dealer visit. The company began rolling out OTA update version 2023.38.4 to affected vehicles starting October 19, 2023 — designed to prevent the overvoltage condition from occurring in the first place. Tesla formally filed the recall (NHTSA Recall Notice No. 25V092) for the 376,241 U.S. vehicles on February 19, 2025. NHTSA's Office of Defects Investigation cited the post-remedy decline in complaints as a key factor in closing the case, though the agency noted it will continue monitoring the fix's long-term effectiveness.
For owners of 2023 Model 3 and Model Y vehicles, the practical takeaway is straightforward: if your car received software version 2023.38.4 or any subsequent update, the fix is already applied. You can verify your current software version under Controls → Software on your touchscreen. The NHTSA closure is a signal that the OTA remedy held up under regulatory scrutiny — a meaningful data point for how Tesla handles safety issues without requiring physical service appointments.
Marcus covers Tesla's software releases, FSD rollouts, and OTA changes. Background in automotive engineering. Based in Austin.
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