The State Administration for Market Supervision in China said Tesla, Inc. (NASDAQ: TSLA) will recall 127,785 units of its Model 3 vehicles in the country due to some defect in semiconductor components, StreetInsider.com said in a report.
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The EV giant said that the fault is not a manufacturing defect but a design flaw and could cause collisions.
The recall will include Model 3 cars produced between January 2019 and January 2022. Of these 127,785 vehicles, 93,578 were manufactured at the company’s Giga facility in Shanghai and 34,207 were imported from Fremont, California.
According to Tesla, the driver will not be able to start the vehicle if the semiconductor component fails when the car is parked. Also, the car will lose its driving power if the component fails when the vehicle is in motion.
Consensus Rating
Overall, the stock has a Moderate Buy consensus rating based on 15 Buys, five Holds and six Sells. TSLA’s average price target of $1,005.64 implies 4.9% downside potential. Shares have gained 54.6% over the past year.
Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into Tesla’s performance.
According to the tool, compared to the previous year, Tesla’s website traffic registered a 17.8% decline in global visits in February. Moreover, the website traffic has decreased 37.6% year-to-date against the same period last year.
Conclusion
Between September 2021 and February 2022, the Texas-based company launched 16 recalls — three in China, 11 in the U.S. and one in Canada. So far, these recalls have not had a significant impact on the stock price.
This is clear from the fact that TSLA stock closed 1.1% up on Thursday. It gained another 0.9% in extended trade to end the day at $1,066.50.
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