2025 Tesla Model Y Problems: 6 Known Issues

On the 2024-2026 Tesla Model Y, nHTSA's Office of Defects Investigation upgraded its Full Self-Driving probe to an Engineering Analysis (EA26002) on March 18, 2026, covering roughly 3.2 million FSD-equipped Teslas including 2020-2026 Model Y. The alleged defect is in the FSD degradation-detection system: when roadway visibility is reduced by sun glare, fog, dust or other airborne obstructions, the system may fail to detect the degraded condition or warn the driver in time to take over, and may lose track of — or never detect — a lead vehicle. NHTSA cited nine crashes tied to the condition, including one fatality and two injury crashes, with six additional incidents under analysis. An Engineering Analysis is the last procedural step before the agency can demand a recall. A separate probe covering roughly 2.88 million vehicles concerns FSD-induced traffic-law violations such as wrong-lane entries and driving straight through turn-only lanes. Owner complaints on 2025 Model Y independently describe FSD steering into barriers and guardrails and failing to recognize signals and stop signs.

On the 2025-2026 Tesla Model Y, nHTSA complaints on the 2025 Model Y show a persistent cluster of forward-collision-avoidance failures separate from FSD steering behavior: the vehicle applies hard automatic braking on clear, open road with no obstacle present, most often near overpasses, shadows, oncoming traffic on curves and roadside signage. Owners report the deceleration is severe enough to create a rear-end risk from following traffic. A recurring aggravating factor in the complaints is that the AEB setting cannot be permanently turned off — any reduction or disabling of the setting resets to the default at the start of each drive, so an owner who has experienced repeated false events cannot durably opt out. A smaller subset of the same complaint group reports the opposite failure, with AEB not engaging when a collision was imminent.

On the 2020-2025 Tesla Model Y, software release 2024.38.3 introduced a defect on 2020-2025 Model Y (and 2017-2025 Model 3, 2024 Cybertruck) vehicles in which the tire pressure monitoring system warning telltale would reset when the vehicle was powered down or went to sleep between drives. As a result, the low-tire-pressure warning light did not remain illuminated across drive cycles as required by FMVSS 138, so a driver could begin a new trip unaware that a tire was still under-inflated. The recall covers approximately 694,000 vehicles.

On the 2024-2025 Tesla Model Y, the front hood (frunk) latch assembly contains a small latch switch that can deform in service. Once deformed, the vehicle no longer detects that the hood is unlatched, so no 'hood open' warning is shown on the touchscreen. A driver who closes the frunk incompletely gets no alert, and the hood can then fully open at speed, blocking forward vision and in some reported cases shattering the windshield. NHTSA recall 24V554000 covers 2020-2024 Model Y (plus 2021-2024 Model 3/S/X) for this defect; the latches were supplied by Magna Closures. Complaints of the hood suddenly opening at highway speed with no prior warning continue on 2025 Model Y vehicles outside the recall population, including reports that the secondary mechanical safety catch failed to hold.

On the 2023-2025 Tesla Model Y, on certain 2023-2025 Model Y (and 2023-2025 Model X, 2024-2025 Model 3/S) vehicles, the vehicle's computer (infotainment/MCU) circuit board can short due to a reverse-current condition on startup. When this happens, the rearview camera image fails to appear when the driver shifts into reverse, leaving a blank screen and forcing reliance on mirrors and shoulder checks — a violation of FMVSS 111 rear-visibility requirements. Tesla discovered the issue in November 2024 after a rising number of warranty computer replacements for shorted boards. The recall covers more than 239,000 vehicles.

On the 2025-2026 Tesla Model Y, the 2025-2026 'Juniper' refresh re-added a physical turn-signal stalk after the steering-wheel haptic buttons proved unpopular, but owners report the new stalk is unreliable. It frequently will not 'hold' a continuous signal — many drivers report only about three blink cycles before it cancels, requiring repeated re-pressing or holding the stalk through a turn. The stalk lacks the traditional detented second click that latches the signal on, and owners on Tesla forums describe it as flimsy/cheap-feeling and counter-intuitive, a genuine safety annoyance because signals stop mid-maneuver. This is a design/usability defect rather than a recall.