Tesla Recalls Over 120,000 U.S Vehicles Over Safety Concerns

Summary

  • The U.S. National Highway Traffic Safety Administration (NHTSA) has announced that Tesla is recalling over 120,000 vehicles due to the risk of cabin doors unlocking during a crash.
  • This recall impacts 2021-2023 Model S and Model X vehicles, which do not meet specific safety standards.
  • Tesla has already begun resolving the problem by issuing an over-the-air software update.
  • Last week, the company initiated its largest-ever recall in the U.S., affecting over 2 million vehicles, to implement additional safety measures within its Autopilot system.
  • This action comes after safety concerns were raised by a federal regulator.
  • As of mid-day Friday, Tesla shares (TSLA) are trading 0.36% higher.

Tesla’s Major Recall

The NHTSA pronounced on Friday that Tesla, a powerhouse in the electric vehicle industry, is recalling 120,423 vehicles in the U.S. This is due to a risk of the cabin doors unlocking in the event of a crash.

Solution in Progress

In response, Tesla has provided an over-the-air (OTA) software update aiming to rectify the issue. This was confirmed by the NHTSA.

Affected Models

Impacted by the recall are Tesla’s 2021-2023 Model S and Model X vehicles. Their failure to comply with specified federal safety standards relating to side-impact protection, prompted the recall.

Improving Safety Measures

Just last week, Tesla initiated the largest recall ever in its U.S. history, affecting more than two million vehicles. This virtually represents nearly every Tesla car on American roads. The proactive move was in response to a need to augment safety measures in its Autopilot driver-assistance system, following safety apprehensions by a federal regulator.

By mid-day on Friday, Tesla’s shares (TSLA) had climbed by 0.36%.

The trading implications of this development could spur market movement linked to Tesla’s shares and potentially influence the trading landscape relative to electric vehicle manufacturers.

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