Tesla Recalls More Than 375K Vehicles Due to Defect in Power Steering

Tesla TSLA is recalling 376,241 vehicles in the United States due to a power steering assist failure that could make steering more difficult, especially at low speeds, increasing the risk of an accident. The recall comes after a year-long investigation by the National Highway Traffic Safety Administration (“NHTSA”), following reports from Tesla owners about steering issues. Per NHTSA, more than 50 vehicles were towed due to the problem.Per an earlier Reuters report, since 2016, tens of thousands of Tesla owners have encountered premature failures in suspension or steering components. Per a safety recall report posted on the NHTSA site, the recall affects Model 3 and Model Y vehicles manufactured for the U.S. market between Feb. 28, 2023, and Oct. 11, 2023, which were running an older software version. The printed circuit boards in the affected vehicles’ steering systems could become overstressed, potentially leading to power steering failure when the car stops and then accelerates. If the power-assisted steering fails, drivers must use greater force to steer, heightening the risk of a crash.As of Jan. 10, 2025, Tesla has identified 3,012 warranty claims possibly linked to this issue. However, the company informed regulators that it was unaware of any accidents, injuries or fatalities related to the defect. To resolve the problem, Tesla is providing an over-the-air software update. The recall follows a similar investigation and voluntary recall in China involving the same steering systems.In 2024, Tesla delivered 1,789,226 vehicles, down from 1,808,581 reported in 2023. Total revenues of $97.7 billion inched up from $96.8 billion recorded in 2023. After a year-over-year decline in annual deliveries, Tesla expects the vehicle business to grow in 2025 on the back of advancements in vehicle autonomy and the introduction of new products.TSLA’s Zacks Rank & Key PicksTesla carries a Zacks Rank #3 (Hold) at present.Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited GELYY, Dana Incorporated DAN and Strattec Security Corporation STRT, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales and earnings indicates year-over-year growth of 66.62% and 149.31%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 15 cents and 38 cents, respectively, in the past 60 days. The Zacks Consensus Estimate for DAN’s 2025 earnings implies year-over-year growth of 59.57%. EPS estimates for 2025 and 2026 have improved 20 cents and 40 cents, respectively, in the past 30 days.The Zacks Consensus Estimate for STRT’s 2025 sales indicates year-over-year growth of 2.61%. EPS estimates for 2025 and 2026 have improved 91 cents and $1.06, respectively, in the past 30 days.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dana Incorporated (DAN): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Strattec Security Corporation (STRT): Free Stock Analysis Report Geely Automobile Holdings Ltd. (GELYY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks