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Feds Close Tesla Steering Loss Investigation, Citing Recall

» Posted July 8, 2026Resources | Share This Post

U.S. auto safety regulators recently ended a probe into reports of steering loss in certain Tesla cars, noting that the automaker completed a recall related to the problem.

The National Highway Traffic Safety Administration first launched the investigation of steering problems for Model 3 and Model Y vehicles in late July 2023. NHTSA’s Office of Defects Investigation later upgraded the probe to an “engineering analysis” covering nearly 400,000 cars.

Some drivers who filed complaints said they were unable to turn their vehicles’ steering wheels, while others said turning required more effort. 

Tesla recalled the vehicles last year, citing a defect in their power steering systems. Although the company denied that the recall was in response to the NHTSA investigation, according to Reuters, the agency opted to close the probe. 

“In view of the recall action taken by Tesla, ODI is closing this investigation, the agency said June 25. “ODI will continue to monitor the effectiveness of the remedy as is consistent with the agency’s authority and practice.”

California Lemon Law Rights for Tesla Drivers

Tesla has become plagued by safety recalls and NHTSA investigations, even as the automaker increases its share of the market for new cars in the U.S.

The company recently announced that it is calling back nearly 200 Cybertrucks because of a defect that Tesla says could cause the vehicles’ wheels to fall off, for instance. Cracks could cause wheel studs to separate from hubs, Tesla said in a recall notice.

NHTSA last year began a separate investigation into certain Model Y vehicles, over reports that children could be stuck in the cars. Tesla also continues to navigate the fallout surrounding fatal accidents involving cars engaged in Autopilot mode, the automaker’s controversial driver-assist technology. 

Tesla drivers in California should understand their rights under the state’s lemon law. Importantly, you do not have to wait for recalls to get defective and malfunctioning vehicles fixed.

The lemon law requires manufacturers to perform various repairs on vehicles while they are under warranty. It also forces manufacturers to buy back (or replace, in some situations) cars that they cannot or will not fix.

The buyback requirement includes compensating the owner for any down payment on the car, as well as for monthly loan payments and the outstanding balance on any loans. Manufacturers are also responsible for towing, rental car and other related expenses. 

There is no specific number of repair requests or attempts that must happen before the buyback or replace requirement kicks in. An experienced California lemon law attorney can help you understand your rights and take action.

Talk with an Orange County Lemon Law Attorney

If you have been stuck with a defective or malfunctioning vehicle, an Orange County lemon law attorney at Bickel Sannipoli APC can help you fight back. Our attorneys combine decades of experience in these cases and have a strong track record of successful results.

Call us at (888) 800-1983 or contact us online to speak with an Orange County lemon law attorney.


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"It took over a year but it got completed the way I had hoped from the beginning. These guys are professional keep you involved and educated throughout the entire process. They also maintain constant pressure on the manufacture. I could not of chosen a better firm to represent me. Thanks Bickel and more specifically Eric Young!"
Posted By: Kareem H

BICKEL SANNIPOLI APC