The National Highway Traffic Safety Administration (NHTSA) announced on Friday that Tesla (NASDAQ:TSLA) will recall 125,227 vehicles in the U.S. due to a seat belt warning system malfunction that increases the risk of injury in a collision.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Details of TSLA’s Vehicle Recall
The NHTSA stated that TSLA’s vehicles failed to meet federal safety requirements as their seat belt warning lights and audible chime may not activate when the driver is unbelted. Tesla’s recall will affect certain Model S vehicles with model years between 2012 and 2024, Model X vehicles with model years 2015-2024 and 2017-2023, and certain Model 3 and Model Y vehicles.
Tesla plans to deploy an over-the-air software update in June to address the issue. The EV major intends to remove reliance on the driver seat occupancy sensor and activate seat belt reminder signals based solely on the driver seat belt buckle and ignition status with this update.
Tesla’s Rising Vehicle Recalls
Tesla is increasingly running into trouble with the NHTSA. In April, the U.S. auto safety regulator stated that it is investigating whether the company’s recall of over 2 million vehicles in December for new Autopilot safeguards was adequate after several crashes.
Furthermore, in January, the company recalled 200,000 Model S, X, and Y vehicles due to a software issue that could affect the driver’s visibility while reversing. In April, the company recalled 3,878 Cybertrucks due to a loose accelerator pedal pad.
What Is the Tesla Stock Price Prediction?
Analysts remain sidelined about TSLA stock, with a Hold consensus rating based on nine Buys, 14 Holds, and nine Sells. Year-to-date, TSLA has declined by more than 25%, and the average TSLA price target of $174.60 implies a downside potential of 2.7% from current levels.
