Electric vehicle manufacturer Tesla (NASDAQ:TSLA) is facing an inquiry by Norwegian regulators over suspension failures in its vehicles. The investigation could lead to a vehicle recall for the company, according to Reuters.
Reportedly, the Norwegian Public Roads Administration (NPRA) initiated inquiries last year and has requested the EV maker to evaluate complaints regarding lower rear control arms breaking in its models. A decision from the NPRA is anticipated by Christmas.
In another development, an investigation from Reuters highlighted that Tesla had prior knowledge of more defects in its vehicles than it chose to disclose. However, the company dismissed safety concerns as it rushed to drive its top line. Moreover, Tesla blamed vehicle breakdowns and component failures on drivers, as it faced ballooning warranty costs.
In recent months, Tesla has also faced labor woes at its plants in Sweden and Germany. Despite these hiccups, Tesla continues to expand its presence. The company recently bagged major incentives for its new facility in Mexico and is looking to invest up to $2 billion in a plant in India.
What is the Prediction for Tesla Stock?
Shares of the company have rallied nearly 100% so far this year and a staggering 1,155% over the past five years. Overall, the Street has a Moderate Buy consensus rating on Tesla, and the average TSLA price target of $245.96 implies that the stock might be approaching fair valuation levels.
Read full Disclosure
