--- title: "1.2 million vehicles involved in government investigation due to suspension faults, adding regulatory risks to Tesla's declining stock price" type: "News" locale: "en" url: "https://longbridge.com/en/news/294525048.md" description: "The National Highway Traffic Safety Administration (NHTSA) has launched an investigation into approximately 1.2 million Tesla Model 3 and Model Y vehicles due to 156 complaints regarding sudden suspension failures. This defect could lead to loss of vehicle control, but no injuries have been reported so far. This move adds new regulatory risks for Tesla, which is already facing a decline in stock prices" datetime: "2026-07-31T14:07:06.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294525048.md) - [en](https://longbridge.com/en/news/294525048.md) - [zh-HK](https://longbridge.com/zh-HK/news/294525048.md) --- # 1.2 million vehicles involved in government investigation due to suspension faults, adding regulatory risks to Tesla's declining stock price According to the Zhitong Finance APP, following multiple complaints from drivers about the sudden failure of the suspension in Tesla brand vehicles, the U.S. automotive safety regulatory agency has launched an investigation into Tesla (TSLA.US), the leader in electric vehicles, AI, autonomous driving, and robotics, focusing on its best-selling electric vehicle models in the U.S. market. This latest investigation by U.S. regulators comes at a time when Tesla's sales in Europe are surging, and the adoption rate of the FSD (Full Self-Driving software platform) in North America has significantly increased. According to documents released by the National Highway Traffic Safety Administration (NHTSA) on its website on Friday, the agency has received 156 reports regarding suspected suspension issues in Tesla vehicles, which "may lead to a loss of directional control." This so-called preliminary assessment involves approximately 1.2 million vehicles, focusing on the Model 3 classic sedan from the 2018 to 2020 model years and the Model Y SUV from the 2021 to 2023 model years. Drivers involved in the incidents reported that there were usually no warnings before the suspension failure, although some reported hearing unusual noises. The NHTSA stated that none of the incidents resulted in injuries or fatalities. Tesla did not immediately respond to requests for comment. Cox Automotive estimates that U.S. sales of pure electric vehicles will reach 247,200 units in the second quarter of 2026, which, although a 14.7% increase from the first quarter, still represents a 20.5% year-on-year decline, marking the third consecutive quarter of year-on-year decline; pure electric vehicles account for about 5.8% of the U.S. new car market, remaining roughly stable compared to the first quarter. These figures highlight that the U.S. electric vehicle market is stabilizing after a sharp contraction following the withdrawal of subsidies, rather than entering a new round of explosive growth. Tesla's vehicle sales in the U.S. have also not surged. Cox estimates its U.S. sales in the second quarter at 124,800 units, a year-on-year decline of 13.1%; total sales for the first half of the year reached 242,100 units, down 10.9% year-on-year. Among these, the Model Y saw an 8.8% increase in the first half of the year, while the Model 3 declined by 34.3%, and both the Model S, Model X, and Cybertruck also saw significant declines. In stark contrast to overall vehicle sales, the commercialization of FSD in North America is indeed surging. Tesla's global active FSD subscriptions in the second quarter were approximately 1.48 to 1.5 million, a year-on-year increase of 56%; the company also stated that the net new subscriptions for the quarter reached a record high, with over 55% of new vehicle deliveries in North America including FSD subscriptions, marking the highest additional rate in history. However, this 55% figure is based on North American data, not solely U.S. data, while the 1.48 million figure is a global statistic. Tesla's vehicle sales in Europe are currently experiencing a strong rebound. Data from ACEA shows that in the first half of 2026, Tesla registered 170,400 vehicles in the EU, European Free Trade Association, and the UK, a year-on-year increase of 54.6%; in June alone, 52,600 vehicles were registered, a year-on-year increase of 49.9%. If only EU statistics are considered, Tesla's registration volume in the first half of the year increased by 75.4% year-on-year, with a 72.1% increase in June. This can already be described as a significant surge in sales, rather than a mere recovery. The overall demand for pure electric vehicles in Europe is also strengthening, with the EU's registration of pure electric vehicles growing to 1.2209 million in the first half of the year, and the market share rising from 15.6% to 20.7% However, it is worth noting that the current rebound in European market sales is built on a low base due to a significant decline in sales in 2025, and is driven by factors such as French subsidies, the electrification of corporate fleets, and rising fuel prices due to the US-Iran conflict. Tesla's global deliveries in the second quarter reached 480,100 units, a year-on-year increase of approximately 25%, setting a quarterly record. Reuters believes that the new demand is particularly concentrated in Europe. The NHTSA has launched a suspension investigation into approximately 1.2 million Model 3 and Model Y vehicles. In the short term, this may not reverse the growth in European sales and FSD subscriptions, but it will increase Tesla's recall costs, warranty reserves, brand trust, and regulatory discounts. Currently, Tesla's operational structure shows a clear divergence: strong recovery in European automotive demand, rapid increase in FSD penetration in North America, but US vehicle sales and automotive profit margins have not simultaneously entered a strong growth cycle. From the perspective of Wall Street giants like Morgan Stanley, who are optimistic about Tesla's stock price, what determines Tesla's fundamentals and valuation prospects is not just selling a few more thousand cars, but whether the massive energy storage systems related to Robotaxi, FSD, Optimus, and AI can prove that Tesla's unique physical AI system has entered a stage of large-scale commercialization. In other words, according to the Morgan Stanley analyst team, Tesla is using the cash flow base formed by the temporary recovery of its automotive business to fund an unprecedented arms race in cutting-edge AI, FSD autonomous driving software, Robotaxi, energy storage systems, humanoid robots, and AI chip manufacturing infrastructure dominated by Musk's "Terafab" vision. 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