Market Commentary

Tesla Recalls Vehicles Over Rearview Safety Concerns

Laiba Bilqees
30 Jan 2024 · 1 minute read

Tesla (TSLA:US) is recalling almost 200,000 Model S, X, and Y vehicles in the U.S. due to a rearview software glitch, according to a statement by the National Highway Traffic Safety Administration (NHTSA) on Friday. The recall, coming within two months of a comprehensive vehicle recall to enhance Autopilot safety features, addresses a software malfunction that may impede driver visibility during reversing, elevating the risk of collisions.

The NHTSA attributes the rearview malfunction to software instability, affecting 2023 models of the specified vehicles. Tesla promptly responded by issuing a free over-the-air (OTA) software update to rectify the problem. As of January 22, the NHTSA has identified 81 warranty claims related to the rearview issue.

This latest recall follows the NHTSA's investigation into Tesla's Autopilot in August 2021, prompted by several incidents where Tesla vehicles collided with stationary emergency vehicles. The scrutiny of Tesla's advanced driver-assistance system raises concerns about safety practices and software effectiveness.

Representative Ro Khanna divested $1,000 to $15,000 worth of TSLA shares in November. It is significant to highlight that Tesla's stock price has declined by over 26% year-to-date, reflecting challenges faced by the electric vehicle giant in 2023. As Tesla addresses safety concerns and navigates market fluctuations, its ability to swiftly resolve such issues will be crucial in maintaining consumer trust and investor confidence.