Tesla recalls 380,000 vehicles due to power steering issues that could cause a crash. It’s just the latest in a series of setbacks that sees the automaker ramp up incentives – including givebacks of up to $6,000 on Cybertruck – in a bid to reverse faltering momentum.
The latest recall involves both the Model Y, seen here, and the Model 3.
Wrapping up a year-long investigation by the National Highway Traffic Safety Administration, Tesla announced it will recall nearly 380,000 vehicles due to a problem with power steering systems.
Due to an “overvoltage” problem with printed circuit boards, some owners have reported having increased trouble turning their Tesla EVs while others say they can’t turn their steering wheels at all. The problem appears to be limited to recent versions of the Model Y SUV and Model 3 sedan.
It’s the latest in a growing series of recalls impacting Tesla products, the Cybertruck, the newest vehicle in the Tesla line-up, facing seven since it was first delivered to customers in November 2023. Problems with the electric pickup, along with a growing political backlash against CEO Elon Musk, have begun driving down sales after years of solid growth. The automaker has been ramping up incentives hoping to lure buyers back into showrooms, with givebacks now reaching $6,000 on Cybertruck.
The latest recall
The recall can leave motorists unable to steer their vehicles once they stop, among other things, to plug in at a Supercharger.
On Friday, Tesla announced it was recalling nearly 380,000 Model Y SUVs and Model 3 sedans to address a power steering issue following a year-along NHTSA investigation.
“In a filing with NHTSA,” Reuters reported, “Tesla said some 2023 Model 3 sedans and Model Y crossovers running older software could face an overvoltage breakdown, potentially overstressing motor drive components on the printed circuit board.”
Tesla claimed that if the problem occurred while a vehicle was moving its steering would be unaffected. Subsequently, steering might require additional effort or the vehicle might not be able to be steered at all. That means some vehicles might be put at risk of a crash if they stopped in traffic or in other situations while on the road.
As of January 10, 2025 Tesla had fielded 3,012 service claims related to the problem. It said it has had no reports of crashes caused by the steering issue.
Mounting safety problems
Cybertruck has so far been recalled seven times in barely 15 months.
The automaker has faced a growing number of recalls over the last several years, including one announced in February 2024 covering 2.2 million vehicles due to problems with the Autopilot system. The power steering issue is the automaker’s largest safety service action this year, topping one in January involving 239,000 EVs due to faulty rearview cameras.
While it’s not unusual for vehicles to face recalls in an era of increased safety scrutiny, the Cybertruck has faced an unusually large number of such actions since its much-heralded 2023 launch.
In all, there’ve been seven, ranging from a faulty tire pressure monitoring system – which covered every truck built through December 2024 – to hardware that could cause Cybertrucks to suddenly lose power.
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Declining sales, rising incentives
Tesla sales have been falling — forcing it to ramp up incentives — and analysts say CEO Elon Musk’s role in the Trump administration is a key factor.
Even as Tesla struggles with recalls and other quality-related issues the automaker has also faced declining sales and earnings. The company suffered a 6% dip in 2024 automotive revenues as worldwide vehicle sales fell 1.1%. In the U.S., that was closer to a 6% decline, based on registration data, according to Cox Automotive.
The situation appears to be worsening, with demand plunging as much as 75% in various European regional markets, such as Germany. Industry analysts also blame backlash to CEO Elon Musk’s controversial role in the Trump administration for the downturn.
Whatever the reason, indications are that Cybertruck sales, in particular, have been plunging, Tesla unable to convert more than a fraction of early reservations into actual purchases. The automaker has just launched incentives of up to $6,000 on the truck, according to various sources. That follows on top of price cuts of up to $20,000.
Tesla briefly appeared to have a lifeline thrown to it by the U.S. State Department which, under the new administration, listed plans to purchase $400 million of the electric trucks, then armor them for use around the world. The deal was scrubbed after its 2025 spending plan was published to widespread criticism.
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