Tesla Shares Slip As Model Y Gets Under US Regulatory Radar Over Steering Wheel Issue

Tesla, Inc. TSLA shares were moving down on Wednesday, extending the Jerome Powell-induced losses from the previous session.

What Happened: The National Highway Traffic Safety Administration has initiated a probe over the steering wheel coming off Tesla’s Model Y SUV following two complaints, the Associated Press reported Wednesday.

About 120,000, 2023-make Model Y vehicles are under investigation for the issue, the report said.

The vehicles in question were reportedly delivered to customers with a missing bolt that holds the wheel to the steering column. While a friction fit held the steering wheel intact when force was exerted IT separated.

This occurred when the vehicle was going on low mileage, the NHTSA said, based on both complaints.

Why It’s Important: Incidentally, Tesla initiated a recall of 3,470 Model Ys recently due to issues with second-row seats. The affected vehicles had one or more of the bolts used for securing not being torqued to specifications. The company assured free rectification through a physical recall.

Price Action: In premarket trading on Wednesday, Tesla shares were slipping 1.54% to $184.82, according to Benzinga Pro data.

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