Tesla, the electric vehicle manufacturer, is facing yet another challenge, this time related to steering problems in some of its Model 3 cars. The National Highway Traffic Safety Administration (NHTSA) has received reports from owners experiencing issues such as reduced steering assist. One driver reported receiving an alert indicating that their steering assist had been reduced and consequently found themselves unable to turn the steering wheel. Fortunately, the problem seemed to resolve itself when they exited and reentered the vehicle.
As Tesla often attracts significant attention, it remains uncertain how significant this particular issue truly is. Nonetheless, Tesla’s stock has dropped 1.9% on Wednesday. It is difficult to determine if the decline is directly connected to the NHTSA reports or merely a result of a general downtrend in the market. Notably, futures for the S&P 500 have fallen by 0.5%, while Dow Jones Industrial Average futures have declined by 0.3%. Similarly, Nasdaq Composite futures have dropped 0.7%. Other volatile stocks, such as Nvidia (NVDA), have also experienced a decline of 1.4% without any major news driving the losses.
Given the overall market conditions, it may be prudent to consider this a risk-off day until further information arises.
Tesla is currently grappling with steering problems in certain Model 3 vehicles, causing its stock to fall. Although it is unclear how significant the issue really is, market fluctuations alongside the NHTSA reports could be contributing factors. Ultimately, it is advisable to remain cautious until more information becomes available.