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Tesla (TSLA, Financials) is recalling approximately 380,000 vehicles in the United States due to a potential power steering assist failure, according to the National Highway Traffic Safety Administration.
Tesla stock is down 5.5% to $334.69 as of 2:38 p.m. ET on Friday.
The recall specifically affects certain 2023 Model 3 cars and Model Y crossovers. The problem comes from outdated programs that could cause an overvoltage breakdown and thereby damage printed circuit board motor driving components.
The NHTSA conducted a year-long study based on claims from Tesla owners complaining about steering problems. Should the breakdown happen while the car is in motion, steering remains operational and the driver is visually alerted. But should the automobile halt, the steering assist might fail and stay disabled until movement starts.
Although Tesla has found over 3,000 warranty claims linked to the issue, it has not recorded any collisions or injuries connected with the fault. The corporation is fixing the problem with an over-the-air free software upgrade.
March 25 will see letters of notice sent to owners of impacted automobiles.
This article first appeared on GuruFocus.