US closes Tesla power steering probe after recall of 376,000 vehicles

Key Facts

Removing a regulatory overhang for Tesla, the National Highway Traffic Safety Administration (NHTSA) closed its investigation into 376,000 vehicles over power steering loss, following the company's recall last year. The agency determined that Tesla's voluntary recall adequately addressed the issue, ending the probe without further action.

The earlier recall covered affected vehicles with free software updates to fix the defect. While the closure lifts residual regulatory uncertainty, the market had already priced in the recall costs. Per market data, Tesla stock (TSLA) closed at $379.71 on June 26, 2026, with a trading range of $368.6-$387.8.

With no near-term regulatory catalysts, investors may shift focus to upcoming quarterly delivery numbers. The stock is trading near the top of its recent range, reflecting a balanced supply-demand dynamic. Any news on production or new orders could provide the next direction for shares.