Tesla (NASDAQ:TSLA) might be one of the biggest names in electric vehicle stocks around, but it’s certainly not proof against the government. And Tesla’s share price is certainly subject to much those same whims, as we saw today. Tesla lost significantly in Tuesday afternoon’s trading, as Tesla found itself taking on the National Highway Traffic Safety Administration over a new issue with Tesla’s cars.
The probe from the NHTSA will cover the Model 3 sedan, and the Model Y SUV, two of Tesla’s biggest sellers. In fact, the probe could address as many as 280,000 individual vehicles. SO what’s wrong with said vehicles? A steering issue, reports note; apparently, the two cars in question have experienced a complete loss of power steering. Worse, the loss happened suddenly, which could make for a downright disastrous situation in mid-drive. However, reports note that the NHTSA is aware of 12 such cases so far, which means that, roughly, one in every 23,334 vehicles has this issue. Still, with five of those 12 reporting that they were unable to steer, it’s a major problem Tesla will no doubt want to address.
That’s not all the problem Tesla has right now, either; reports from Inside EV s notes that, in China, a surprisingly familiar vehicle has appeared in transport from Hefei to Turpan. The vehicle in question bears an extremely strong resemblance to the Tesla Semi, down to its unusual body frame shape and its interior design. Though this isn’t the first such instance—the first traces back to Neuron EV, a California startup—the appearance of such a similarly-designed vehicle will likely have Tesla concerned.
Meanwhile, analysts are on the fence with Tesla. Currently, Tesla is considered a Hold, thanks to 10 Buy ratings, 13 Hold and four Sell. Further, thanks to its average price target of $263.33, Tesla stock only offers a 0.73% downside risk.
