Tesla is rolling out a software update to address a power steering issue affecting certain 2023 Model 3 and Model Y vehicles, impacting an estimated 376,241 units. The fix is being deployed via an Over-the-Air (OTA) update, meaning no physical service appointment is required.
The National Highway Traffic Safety Administration (NHTSA) has classified the issue as a “recall,” as it presents a potential safety risk, but the agency acknowledges on its website that it is being resolved through a software update. The new designation reflects the agency’s evolving approach to software-based vehicle fixes, which have become increasingly common with modern, connected vehicles.
See also: Tesla Updates Model Y Lineup in Europe, Discontinues Launch Series

According to the NHTSA, the problem stems from the printed circuit board within the electronic power steering assist system. The board may experience an overstress condition, which could lead to a temporary loss of power steering assist after the vehicle comes to a stop and then accelerates again.
The agency’s report notes that when the vehicle is in motion, the overstress condition does not impact steering efforts, though a visual alert is displayed. However, once the vehicle speed reaches 0 mph, a loss of electric power-assisted steering (EPAS) may occur, and the issue could persist when the vehicle starts moving again. Despite this, manual steering remains available to the driver.
See also: Tesla Deploys In-Cabin Radar to Improve Safety and Passenger Monitoring

Tesla has reported 3,012 warranty claims and 570 field reports related to the issue as of January 10, but the company stated that it is not aware of any accidents or fatalities linked to the problem. The software update, which brings affected vehicles up to version 2023.38.4 or later, is expected to resolve the issue entirely.
This latest software fix highlights Tesla’s ability to address potential safety concerns remotely through OTA updates, minimizing disruption for vehicle owners while ensuring compliance with regulatory standards.