Tesla (NASDAQ: TSLA) has issued a software update as part of a major recall involving 376,241 Model 3 and Model Y vehicles, according to the National Highway Traffic Safety Administration (NHTSA). The recall addresses a steering issue that could increase the risk of crashes.
Tesla’s Steering Issue Explained
The recall affects certain 2023 Model 3 and Model Y vehicles operating on software prior to version 2023.38.4. The electronic power steering assist system may experience an overstress condition, causing a loss of power steering assist when the vehicle stops and then accelerates again.
Without power steering assist, drivers may experience increased steering effort, particularly at low speeds, raising the risk of accidents, according to the NHTSA.
Tesla’s Free Over-the-Air Software Fix
To resolve the issue, Tesla has rolled out an over-the-air (OTA) software update—completely free of charge. Owners need to install software release 2023.38.4 or a later version to ensure their vehicles remain safe.
Additionally, Tesla will mail official owner notification letters by March 25, informing customers of the recall and update requirements.
Tesla Stock Movement
Following the recall news, Tesla shares slipped 0.24% in premarket trading on Friday. While minor, the drop reflects investor caution as Tesla continues to navigate software updates and regulatory challenges in the evolving EV landscape.
