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Tesla Issues Second Major Recall of 2025, Affecting Nearly 400,000 Cars

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Tesla is recalling over 380,000 Model 3 and Model Y vehicles in the U.S. due to a steering assist malfunction that could increase the risk of accidents, especially at low speeds.

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Tesla is recalling over 380,000 Model 3 and Model Y vehicles in the U.S. due to a steering assist malfunction that could increase the risk of accidents, especially at low speeds.

Steering Assist Failure Identified

The issue affects 2023 Model 3 sedans and Model Y crossovers with outdated software. A power surge may overload steering components, making the wheel harder to turn.

What Drivers Are Reporting

Some Tesla owners say they were unable to steer their vehicles, while others noticed significantly increased steering effort. More than 50 vehicles had to be towed.

Root of the Problem

Tesla said the malfunction is triggered by a surge in electrical current, which can disable the power steering system. The problem doesn’t affect movement but poses risks when starting or stopping.

Thousands of Warranty Claims Logged

By January 10, Tesla had received over 3,000 warranty claims possibly linked to this defect. Despite the volume, the company says no crashes or injuries have been reported.

Software Fix Already Released

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Tesla has addressed the issue through an over-the-air software update. The new software is designed to prevent overloads in the power steering module.

NHTSA Investigation Still Ongoing

The U.S. National Highway Traffic Safety Administration (NHTSA) has been investigating steering complaints for more than a year and continues to monitor the situation.

Not the First Recall This Year

In January, Tesla recalled about 239,000 vehicles due to faulty rear-view camera systems. This second recall puts added pressure on the company amid a year of declining stock value.

Market Reaction to the News

Tesla shares dipped slightly in premarket trading following the announcement. The company’s stock has already fallen 10% since the start of the year.

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