Tesla, Inc. (TSLA) closed at $332.81, up 0.58%, as a new U.S. vehicle safety recall added to ongoing regulatory scrutiny from the National Highway Traffic Safety Administration (NHTSA).

The recall covers 20,349 Model 3 and Model Y vehicles equipped with low-beam headlights that may exceed federal brightness limits. NHTSA states that the defect could affect visibility for other road users and increase the risk of a collision.

Scope of the Recall

The action applies to certain 2017–2023 Model 3 cars and 2020–2023 Model Y vehicles. Tesla identified 18,735 Model Y vehicles and 1,614 Model 3 cars within the affected population, using manufacturing and service records to pinpoint vehicles fitted with specific headlamp assemblies.

NHTSA assigned recall number 26V507 after reviewing the headlamp issue. The affected assemblies include units carrying a supplier manufacturing date of June 2, 2023, or later. Marelli Automotive Lighting, based in Mexico, supplied the headlamp assemblies covered by the recall. Marelli is a major global Tier 1 automotive lighting supplier, and the recall highlights how component-level defects at a single supplier can cascade into a manufacturer-level safety action.

According to NHTSA, the low beams can produce excessive light in portions of the federally defined testing zone. Federal Motor Vehicle Safety Standard No. 108 sets photometric requirements for headlight performance, and exceeding these limits can create glare for oncoming drivers, potentially reducing road visibility and raising the risk of a crash.

Remedy Not Yet Finalized

Tesla submitted the recall report on August 4, 2026, and notified its stores and service centers shortly afterward. The company has not yet finalized a repair plan for the affected headlights. NHTSA has also not confirmed whether Tesla can address the issue through a software update.

Tesla has frequently used over-the-air updates to resolve software-related recalls across its vehicle lineup. However, this recall may require a different approach because it involves specific physical headlamp assemblies rather than a software defect. Owners will need to wait for Tesla to provide repair instructions once the company approves a remedy.

Tesla plans to mail owner notification letters on September 15, according to the recall filing. The company may also alert affected owners through its mobile application before the letters arrive. Once a remedy becomes available, owners can follow Tesla's service instructions.

Broader NHTSA Scrutiny

The headlight recall comes amid a separate NHTSA investigation involving approximately 1.2 million Tesla vehicles. Regulators opened that review after receiving 156 complaints about possible front suspension component failures. The investigation covers certain Model 3 and Model Y vehicles built across several model years.

Some complaints allege that the front lower lateral link detached and affected steering control. Drivers also reported vehicles becoming undrivable after the component failed. NHTSA has not linked the issue to any reported crashes, injuries, or deaths.

Tesla previously recalled smaller groups of Model 3 vehicles over similar lower-link problems in 2021 and 2023. Regulators will now assess the cause, scope, and severity of the newer suspension complaints. As Tesla's fleet on U.S. roads has grown substantially in recent years, the volume of recalls and investigations has drawn sustained attention from federal safety regulators.

TSLA ended the trading session higher despite the latest recall and continuing federal safety reviews.