2023 Tesla Model Y: Sell It Now or Keep Driving It?

The setup

You bought a 2023 Tesla Model Y, probably because you wanted cutting-edge electric tech, impressive acceleration, and the promise of advanced safety features. Now it's late 2026, you've put some miles on it, and you're wondering whether to keep driving it or cash out while there's still equity left.

This is not a theoretical exercise. The 2023 Model Y has a substantial federal safety record, and the numbers tell a story that should inform your decision. We looked at what actual owners reported to NHTSA, counted the recalls, and read the complaints. Then we did the math on what staying versus selling looks like over the next three years.

Our verdict: sell it now.

What NHTSA data actually shows

As of today, NHTSA's database contains 1185 owner complaints for the 2023 Tesla Model Y. There are 17 safety recalls on file. Of those complaints, 156 involved a crash, 4 involved a fire, and 87 reported injuries. Those are not trivial numbers for a vehicle that's only been on the road for about three years.

The most-complained-about system is forward collision avoidance, with 480 complaints. That's the system that's supposed to prevent crashes, not cause them. Steering comes in second with 215 complaints, followed by vehicle speed control at 168, service brakes at 151, suspension at 132, and electrical system at 124.

Let that sink in. Nearly half of all complaints involve the very technology Tesla markets as a safety advantage. When the system designed to stop you from hitting things generates 480 complaints, you have a pattern, not a few isolated incidents.

Here's what owners actually reported to NHTSA:

"The contact owns a 2023 Tesla Model Y. The contact stated that while pulling into a parking space with the brake pedal depressed, the vehicle unintendedly accelerated and struck an occupied parked vehicle ahead. Upon shifting into Reverse (R), the failure r..."

"On October 7, 2026 at about 5:01 PM, on I-75 near Acworth, Georgia, in clear daylight, my 2023 Tesla Model Y was operating with Full Self-Driving (Supervised) engaged at about 76 mph. The vehicle moved from a general traffic lane into an express lane that w..."

"i was driving Tesla in full self driving and when it parked halfway in the garage and as soon as tried to take control It dashed into my garage inner walls and went through it within a fraction of a second. It was out of control."

These are not complaints about squeaky trim or a malfunctioning cupholder. These are loss-of-control events.

You've also got eight open recall campaigns right now. Two involve steering components that can separate or disconnect. One involves a seat bolt that could compromise your seat belt in a crash. Another involves a battery disconnect that might not isolate high voltage after a crash, increasing the risk of electrical shock. There's a recall for Full Self-Driving software that allows the vehicle to exceed speed limits or travel through intersections unlawfully. And there's a recall because safety features can become unavailable without warning.

Yes, most of these have over-the-air software fixes or free service center repairs. But the question isn't whether Tesla will eventually patch the problems. The question is whether you want to keep driving a vehicle with this track record while you wait for the next update.

For context, NHTSA's crash test gave the 2023 Model Y an overall 5 of 5 stars, with 5 stars in frontal, side, and rollover categories. Rollover probability is 7.9 percent. The structure is sound when the systems work as intended. But the complaint record suggests the systems don't always work as intended.

The math

Let's build a worked example. Assume you financed $50,000 at 6.5% for 72 months back in 2023. Your payment is around $820 per month. You've made about 45 payments, so you've got 27 months left, roughly $21,000 in remaining payments.

Electric vehicles have been depreciating faster than the general market, and Teslas have seen particularly steep drops. Let's assume your 2023 Model Y is worth $32,000 in today's market. That's a conservative estimate, not a quote, but it reflects the direction this segment has moved. If you owe $21,000 and the car is worth $32,000, you're sitting on about $11,000 in equity.

Here's what keeping it looks like versus selling:

We're assuming another $6,000 in depreciation over the next 27 months, which is modest given the Model Y's trajectory. If depreciation accelerates, or if another recall or headline event craters resale value, you could easily end up underwater.

This doesn't yet account for maintenance, insurance, or the cost of your time dealing with recall repairs. Tesla's service network is not known for convenience, and getting eight open recalls addressed, even if they're free, is going to cost you hours.

If you sell now and put that $11,000 toward a different vehicle, you're out from under the risk and you stop the depreciation clock. If you need to replace this car, check our lease vs buy guide and the current market pulse for what makes sense in late 2026.

What we recommend

Sell it now. The 2023 Tesla Model Y has a serious complaint record concentrated in the systems that matter most: collision avoidance, steering, brakes, and speed control. You've got 17 recalls, 8 of which are still open, and 480 complaints about the forward collision system alone. The crash data shows 156 complaints involving a crash and 87 involving injuries.

This is not a vehicle we'd keep if we had equity and an exit option. The technology that Tesla uses as a selling point is the same technology generating hundreds of federal complaints. You're not driving a car with a few quirks. You're driving a car with a documented pattern of control and safety system issues.

The financial case is straightforward. You have equity now. Depreciation and ongoing payments will erode that equity over the next two years. The recall history and complaint volume create downside risk to resale value. Sell while you're ahead.

If you're worried about selling at the wrong time or need help thinking through financing a replacement, our sell or keep framework walks through the decision structure, and the refinance verdict can help if you're comparing a refi to a sale.

What would change our mind

If Tesla issued a comprehensive hardware retrofit that addressed the root causes behind the forward collision and steering complaints, and if the complaint rate dropped substantially over the next year, we'd reconsider. An over-the-air patch is not the same as a fix. Software can mask a hardware problem, but it doesn't eliminate it.

If NHTSA closed all open investigations with no further action and the complaint rate fell below 300 for the model year, that would indicate the worst is behind this vehicle. We're not there.

If you owed more than the car is worth and couldn't afford to cover the gap, keeping it while you pay down the loan might be your only practical option. But that's a financial constraint, not a safety argument.

Bottom line

The 2023 Tesla Model Y earned a 5-star crash test rating, but it has 1185 owner complaints, 17 recalls, and 480 complaints about its forward collision system. The gap between the engineering promise and the owner experience is too wide. You have equity now, and the math says you'll have less of it in two years. Sell it, move on, and buy something with a cleaner record.

Safety figures on this page come from the NHTSA public complaint and recall database for the 2023 Tesla Model Y, retrieved 2026-10-21. Complaint counts reflect reports filed by owners and are not verified defect findings.