EV leader Tesla has been having a tough time as it voluntarily recalled thousands of their newest vehicle models due to manufacturing issues.
Tesla Cybertruck Recall
When the Tesla Cybertruck was first released in late 2023, it captured the world’s attention for its hyper-futuristic look and its endorsements by celebrities across the US. But its recent rollout has just been hit with a major hurdle.
Faulty Accelerator Pedals
This week the EV behemoth has had to recall almost 4000 of the new vehicles due to faulty accelerator pedals that could cause unintentional acceleration while driving.
NHTSA Confirms
The news was officially confirmed by the National Highway Traffic Safety Administration on Wednesday. Tesla also gave public notice of the issue.
Increased Crash Risk
The NHTSA explained that the accelerator pedal on the model could become stuck when pressed down, as the accelerator pad could “dislodge and cause the pedal to become trapped by the interior trim,” increasing the risk of a crash.
Recall Notes
“An unapproved change introduced lubricant (soap) to aid in the component assembly of the pad onto the accelerator pedal, […] residual lubricant reduced the retention of the pad to the pedal,” was noted on the recall document.
3878 Vehicles Recalled
The recall will apply to exactly 3878 Cybertrucks that were manufactured between Nov. 13, 2023, and April 4, 2024, covering most of the new designer vehicles that have already been sold.
A Voluntary Recall
Tesla initiated the voluntary recall on April 12 and officially notified the NHTSA of the accelerator pedal manufacturing faults on April 17. They alerted customers to the fact that “the performance and operation of the pedal will be affected, which may increase the risk of a collision,” in a notice of their own.
No Accidents or Injuries
It’s a proactive move for the company, which has affirmed that no accidents or injuries have been reported due to the accelerator pedal so far.
TikTok Call Out
The manufacturing issue came to the company’s attention after a Cybertruck owner shared a video demonstrating the lodged pedal on TikTok.
Product Changes Already Made
Tesla promised to rework or replace the accelerator on the Cybertruck model in order to push forward with production and sales. Product changes were in effect by April 17.
In Transit Vehicles Taken In
Any Cybertrucks currently in transit or waiting at delivery centers have also been taken in for modifications, meaning all ongoing deliveries will be delayed.
Cybertruck Will “Look Like the Future”
CEO Elon Musk recently declared that the Cybertruck would help make “the future […] look like the future!”, and has announced plans to ramp up production to 250,000 per year by 2025.
An Awkward Time for Tesla
This mass recall might just put a spanner in the works for Tesla’s newest product, and it has come at a tricky time for the EV giant.
Recent Layoff, Disappointing Sales
Recently Musk announced a slate of layoffs that would affect 10% of the company’s global workforce. It followed a disappointing first quarter, where sales dropped by more than 20% from the previous quarter.
“A Notably Lower Growth Rate”
Musk had previously warned of a “notably lower growth rate” for the company during a January earnings call. After the quarterly report was released, shares fell by 4.9%.
$56 Billion Pay Package
In more recent news Tesla has nudged investors into preapproving a $56 billion pay package for Musk, which had previously been rejected by a judge who called it an “unfathomable sum”.
Bad News for Musk
It looks like bad news all around for the former wealthiest person in the world, who was ousted from the number 1 position by Meta CEO Mark Zuckerberg on the Bloomberg Billionaire index. Now, analysts are making less-than-stellar predictions.
Time to Convince Investors
“Musk needs to keep investors convinced that the company’s projects are pursuing the right path and that these will lead to margin appreciation over time,” said Investing.com senior analyst Thomas Monteiro.
Potential Jeopardy
“An epic failure on the Cybertruck could very well jeopardize that perception, especially given that the company hasn’t really launched any groundbreaking innovations in years now,” he continued.
“Another Black Eye for Tesla”
Wedbush Securities senior equity analyst called the recall “another black eye for Tesla, which has added to the chaos going on for Musk,” adding that the Cybertruck is “the pedestal moment and a recall out of the gates is a bad look.”
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