Tesla Inc (NASDAQ:TSLA) shares fell on news Elon Musk’s car firm is facing an investigation into hundreds of thousands of its Model 3 and Y vehicles.
Some 280,000 Tesla cars face being affected by the US National Highway Traffic Safety Administration’s (NHTSA) investigation into reported steering issues.
After receiving 12 complaints from drivers over control loss and power steering issues, the government department confirmed the probe on Tuesday, saying it would focus on 2023 models.
Though the NHTSA would have to declare the investigation an engineering analysis before telling Tesla to recall the vehicles, the move marks the first formal step in determining any unreasonable safety risks.
Tesla has faced having to recall vehicles repeatedly in recent years, though it has often been able to solve the issues via system software updates.
Shares fell 0.9% to US$258.73 in pre-market trading following the news.