Tesla faces an NHTSA probe over steering control issue
Justin Sullivan/Getty Images News
The National Highway Traffic Safety Administration posted a notice on its website that it is opening a preliminary investigation into new Tesla (NASDAQ:TSLA) Model 3 sedans and Model Y SUVs for a possible steering problem. The issue could involve as many as 280K vehicles.
The safety regulator is aware of 12 separate complaints about a sudden loss of power steering assistance. Of those complaints, five pointed to a complete inability to steer. The NHTSA documents indicated that one crash is connected to the issue. One person who posted a complaint on NHTSA's website mentioned coming close to oncoming traffic when her vehicleâs power steering failed as she exited a parking lot.
The preliminary investigation could lead to an engineering analysis report and a potential recall notice down the road, although many investigations are closed with no further action.
Shares of Tesla (TSLA) fell 2.25% in afternoon trading on Tuesday. The electric vehicle stock is down 7% over the last two weeks after the sizzling 2023 rally peaked right before the Q2 earnings report. 
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