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Tesla Recalls 376,000 Vehicles Due To Faulty Steering

Tesla (TSLA) is recalling 376,241 vehicles in the U.S. to fix an issue with its power-assisted steering system, according to the U.S. National Highway Traffic Safety Administration (NHTSA).

The recall includes Model 3 and Model Y vehicles that were manufactured in the U.S. from February through October 2023, and that were equipped with an older software product.

According to Tesla, existing circuit boards in the Model 3 and Model Y steering systems could become overstressed, causing the power-assist steering to fail when one of the vehicles rolls to a stop and then accelerates again.

The NHTSA says the problem can increase the risk of a collision.

Tesla has said that it is not aware of any crashes, injuries or deaths related to the power steering failures, and that it was offering an over-the-air software update to fix the problem.

However, the U.S. recall follows a similar one that occurred in China due to the same steering system issue.

Tesla chief executive officer (CEO) Elon Musk has a history of clashes with the NHTSA over vehicle safety issues and previous recalls of Tesla vehicles.

The NHTSA has been engaged in a years-long investigation into Tesla’s autopilot or full self-driving mode.

Media reports state that the Musk-led Department of Government Efficiency (D.O.G.E) has led mass firings at the NHTSA in recent weeks, reducing the agency’s ability to investigate vehicle safety matters by about 10%.

Tesla’s stock has declined 10% so far this year to currently trade at $337.80 U.S. per share.