Tesla Stock Steady as Regulator Probes 1.2 Million Vehicles

This article first appeared on GuruFocus.

Tesla (NASDAQ:TSLA) faces a preliminary evaluation by the National Highway Traffic Safety Administration covering roughly 1.2 million vehicles, after 156 complaints that the front lower lateral link detached from the suspension. Tesla shares are up 0.99% premarket.

The vehicles under review are 2018 to 2020 Model 3 and 2021 to 2023 Model Y. NHTSA said the failure can cause a loss of steering control and leave the car undriveable and needing a tow. Most complaints described no warning beforehand, though some owners reported noises. The agency said it is aware of no crashes, injuries or fatalities.

Tesla has recalled vehicles over the same part twice, covering about 2,800 Model 3 units in 2021 over a production issue and 422 in 2023. NHTSA said the failures now under review fall outside the scope of both and do not appear to share the earlier cause.