2023 Tesla Model Y Problems: 9 Known Issues

On the 2020-2025 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 2017-2024 Model 3, 2013-2024 Model S and 2016-2024 Model 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 2020-2023 Tesla Model Y, 2020-2023 Model Y crossovers built at Fremont, Giga Austin and Giga Berlin can leak water into the rear trunk and subtrunk through gaps around the liftgate lamp studs and connector, and through inadequate liftgate sealing. Owners report standing water in the spare-tire well, soaked carpet, and water cascading out when the trunk is opened after rain. Tesla released SB-23-10-003 (April 2023) to reseal the assembly.

On the 2020-2026 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. Owner complaints on 2025 Model Y independently describe FSD steering into barriers and guardrails and failing to recognize signals and stop signs.

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 TPMS malfunction telltale did not persist across drive cycles as required by FMVSS 138, S4.4(b)(3), so a driver may not be adequately warned of potential tire under-inflation. The recall covers approximately 694,000 vehicles.

On the 2023 Tesla Model Y, on 2023 Model 3 and Model Y vehicles built roughly Feb 24 to Oct 11, 2023 (Feb 28 for Model 3), running software prior to 2023.38.4, the printed circuit board for the electronic power steering assist can experience an overstress condition. This causes a loss of power steering assist when the vehicle comes to a stop and then accelerates again, requiring much greater steering effort, especially at low speeds. The defect followed a lengthy NHTSA investigation (PE23-014, upgraded to Engineering Analysis EA24-001) that collected more than 2,300 complaints alleging loss of steering or steering control, including at least one crash. Tesla recalled 376,241 Model 3 and Model Y vehicles in February 2025.

On the 2020-2024 Tesla Model Y, leaving Sentry Mode and/or Cabin Overheat Protection enabled on 2020-2024 Model Y causes 7-14% HV pack drain per day plus accelerated 12V battery cycling, because the car keeps the HV system live, cameras recording, and the Autopilot computer processing video continuously. Owners report dead 12V batteries, range anxiety, and inability to drive after a few unplugged days. Tesla added throttling in 2024.32.6 and a ~40% reduction in 2024.38.4, but baseline drain remains substantial.

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 2020-2024 Tesla Model Y, 2020-2024 Model Y (especially Performance trim, which sits ~10mm lower) is delivered with aggressive, non-adjustable rear negative camber that causes severe inner-edge wear on the rear tires. The factory rear camber cannot be changed via standard alignment — only toe is adjustable. Owners commonly replace rear tires every 15-25k miles, with some Performance owners going through 3 sets in 60k miles. The 400+ lb-ft of instant rear-wheel torque combined with the vehicle's 4,400-4,600 lb weight amplifies the wear.

On the 2021-2024 Tesla Model Y, multiple Model Y owners report the windshield spontaneously cracking while using cabin preconditioning or the defrost function in cold weather. Owners describe cracks appearing as the heating system warms the cold glass, and at least one reports a shop seeing the same crack in the same place on another car, suggesting thermal stress on the windshield (sometimes attributed to the defrost/heating airflow and the heated-glass or windshield design). Because Tesla windshields are large, curved, and expensive, and the cracks are not the result of road debris, owners frequently dispute warranty coverage. This is an owner-documented pattern rather than a formal recall.