Tesla Inc (NASDAQ: TSLA) faces an investigation by Norway's traffic safety regulator, the Norwegian Public Roads Administration (NPRA), regarding potential suspension failures in its electric cars.
The NPRA's senior engineer, Tor-Ove Satren, mentioned that they began inquiring Tesla in September 2022 about consumer complaints about breaking lower rear control arms on Model S and X vehicles.
The NPRA is considering recommending a recall of all Model S and X vehicles to replace rear lower control arms if they find a serious risk, Reuters reports.
Alternatively, the agency might close the review without action or extend the investigation, with a decision expected by Christmas. The NPRA has the authority to order a recall if necessary.
The inquiry follows a Reuters investigation revealing Tesla's frequent suspension and steering part failures and the company's tendency to attribute these issues to "driver abuse."
This investigation was based on Tesla documents and interviews with former employees.
The NPRA's regulatory review in Norway was prompted by over ten customer reports in 2022 about sudden control arm failures.
These failures are a significant problem in Norway, one of Tesla's most extensive European markets.
Customers have reported instances where the control arm broke soon after inspection by Tesla's service centers.
Tesla entered the Norwegian market in 2013 and has since dominated it, with 123,642 Tesla cars registered in Norway.
The NPRA, which had its final meeting with Tesla this month, could report the issue to the European Union's Safety Gate, a rapid alert system for dangerous products if they recommend or order a recall.
Despite Tesla modifying the lower rear control arm, concerns remain about the large number of cars with potential issues still on the roads.
Price Action: TSLA shares traded higher by 1.98% at $252.04 on the last check Thursday.