NHTSA Probes 1.2 Million Tesla Vehicles Over Suspension Failure Reports

The National Highway Traffic Safety Administration (NHTSA) has launched a preliminary investigation into approximately 1.2 million Tesla vehicles following reports of suspension failures that could lead to a sudden loss of steering control, the agency announced Friday.

Details of the Investigation

The probe, opened by the agency's Office of Defects Investigation, focuses on 2018-2020 Model 3 and 2021-2023 Model Y vehicles. According to NHTSA, it has received 156 complaints from owners alleging that the front lower lateral link can detach, a failure which could make the vehicle undriveable.

NHTSA noted that while some owners reported hearing noises before the incident, most complaints indicated there was no advance warning. The agency stated it is not aware of any crashes, injuries, or fatalities related to the potential defect at this time.

Context and Previous Recalls

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This inquiry is classified as a preliminary evaluation, the first stage in NHTSA's formal investigation process. The evaluation will assess the cause, scope, and severity of the potential defect, which could escalate and lead to a mandatory recall if regulators find a safety-related issue.

Tesla has previously issued smaller recalls for similar problems. A 2021 recall covered about 2,800 Model 3s due to a production issue, and a 2023 recall involved 422 Model 3 vehicles. However, NHTSA specified that the failures reported in the new investigation extend beyond the scope of those prior actions and do not appear to be related to the same cause.

For investors, the investigation adds to the regulatory scrutiny facing the electric vehicle maker (NASDAQ: TSLA). A potential recall of over a million vehicles would present a significant logistical and financial challenge and could impact brand perception regarding manufacturing quality and long-term durability.