Tesla is shipping a software fix for 2023 Model 3 and Model Y vehicles that could potentially have a power steering issue.

The National Highway Traffic Safety Administration (NHTSA) uses the term “recall” for the issue because, by definition, it is an “unreasonable safety risk or fails to meet minimum safety standards.”

It is worth noting that the NHTSA does recognize that it is a software update on its official website with a new badge that it recently started placing on these types of fixes.

However, the power steering issue is being resolved through an Over-the-Air software update, which will not require physical service from Tesla, and will be fixed through an internet connection.

The issue is impacting an estimated 376,241 Tesla Model 3 and Model Y vehicles operating software prior to 2023.38.4. The NHTSA writes on its website that:

“The printed circuit board for the electronic power steering assist may experience an overstress condition, causing a loss of power steering assist when the vehicle reaches a stop and then accelerates again.”

The agencies 573 report continues:

“By design, if the overstress condition occurs while the vehicle is traveling above 0 MPH, steering efforts will not be affected, and a visual alert will illuminate. Once the vehicle speed reaches 0 MPH, a loss of EPAS may occur, and loss of EPAS will persist when the vehicle is driven above 0 MPH. Manual steering without EPAS remains available to the driver.”

As of January 10, Tesla says it has received 3,012 warranty claims and 570 field reports relating to the issue, but it is not aware of any accidents or deaths due to the problem.

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A new study from the online lending service marketplace LendingTree has put a spotlight on Tesla’s popularity among car buyers looking for a luxury vehicle. From January through November 2024, the Tesla Model Y and Model 3 received the most loan inquiries from car buyers looking to acquire a luxury vehicle.

The study:

• For its study, LendingTree analyzed over 1 million auto loan inquiries for passenger vehicles from January 1 to November 30, 2024.
• To determine which luxury vehicles were most popular among car shoppers, LendingTree took a luxury vehicle make’s total number of queries and divided it by the total number of luxury vehicle queries during the study’s period.
• Carfax’s “Complete Guide to Luxury Car Brands” was used to determine which car brands were considered luxury. Tesla is included in the list.

The Model Y and Model 3’s results:

• As per LendingTree’s study, Tesla’s two mainstream vehicles attracted the top interest among car buyers looking to acquire a luxury car.
• The Tesla Model Y claimed the top spot in the study, with 6.8% of luxury vehicle loan queries being centered on the best-selling all-electric crossover.
• The Tesla Model 3 followed closely at 5.6%, which is quite impressive considering that the vehicle is a sedan.
• Overall, Tesla was the study’s second most sought-after luxury brand after BMW, though this was partly due to the company’s significantly smaller vehicle lineup.
• BMW captured 16.6% of luxury brand queries in the study, while Tesla captured 15.8%.
• This means that Tesla beat out Mercedes-Benz and Lexus, which captured 12.0% and 11.1% of luxury brand inquiries, respectively.

Why it matters:

• As per LendingTree, a good reason behind the popularity of the Tesla Model Y and Model 3 among luxury car buyers may be the vehicles’ reasonable price. 
• Despite Tesla being considered a luxury brand, the Model Y and Model 3 are priced very competitively.
• The 2024 Model Y starts at a reasonable $44,990. The Model 3 is even more budget-friendly, praised by Kelley Blue Book as a “bargain among electric sedans” at its price.

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A study from Self Financial has determined that the Tesla Model 3 sedan is the most affordable car to run in the United States. Its sibling, the best-selling Model Y crossover also made it to the list. 

This is quite impressive for Tesla’s two mainstream vehicles as the Model 3 and Model Y are both premium priced.

The analysis:

• For its study, Self Financial considered the running costs of the 50 best-selling vehicles from 2022 to 2024 to find out how much it costs to run a car on average in the United States.
• The study took into account the average annual costs for fuel or energy, maintenance, insurance, and fees and taxes of the United States’ best-selling vehicles, among other factors.
• Based on the study’s results, it costs an average of $6,462 per year to run one of the United States’ best-selling vehicles. 
• Fuel costs tend to be the largest expense, comprising 34.8% of all annual running costs in the study.
• On average, $2,246 is spent on fuel or energy costs; $1,633 is spent on maintenance costs; $1,763 is spent on car insurance; and $820 is spent on annual fees and taxes.

Tesla’s results:

• Self Financial found that the Tesla Model 3 is the most affordable car to run in the United States, with an annual running cost of $5,061.
• The annual energy costs of the Tesla Model 3 were the lowest in the study at just $636 per year. That’s 71.68% lower than the study average of $2,246.
• The annual maintenance costs of the Model 3 were also the lowest of all the cars that were analyzed in the study, at just $1,143. That’s 30% below the study average of $1,633.
• The Tesla Model 3 would have been even cheaper to run, but the vehicle was the study’s 3rd most expensive car to insure at $2,241 per year. 
• The Model 3’s annual fees and taxes were also higher than the study average at $1,041 per year.
• The Tesla Model Y was the study’s 7th most affordable car to run, with an annual fuel cost of $708, annual maintenance of $1,339, annual insurance cost of $2,399, and annual fees and taxes of $947.

Self Financial’s other findings:

• A look at the results of the other vehicles in the study highlights the low running and maintenance costs of Tesla’s two mainstream vehicles.
• Most of the vehicles in the list were notably more affordable than the Model 3 and Model Y, such as the Hyundai Elantra, which was the second most affordable car to run in the United States. 
• For context, the Hyundai Elantra, a budget-friendly sedan, had an annual fuel cost of $1,615, annual maintenance cost of $1,435, annual insurance cost of $1,547, and annual fees and taxes of just $508.

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