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Embattled Tesla recalls Cybertrucks over risk of panel detachment / Photo: © AFP/File
NYSE - LSE
Embattled Tesla recalls Cybertrucks over risk of panel detachment
Tesla is recalling more than 46,000 Cybertrucks because of a defect that can lead an exterior panel to detach, increasing the risk of a crash, according to a safety notice reviewed Thursday by AFP.
The recall affects essentially all of the futuristic-looking vehicles delivered in the United States.
The move is due to a part Tesla calls a "cant rail" -- an exterior panel -- that was affixed with an adhesive "susceptible to environmental embrittlement," according to a company filing on the National Highway Traffic Safety Administration website.
Detachment of the part, which Tesla describes as "cosmetic," poses the risk of creating a "road hazard for following motorists and increase their risk of injury or a collision," according to the NHTSA document.
The recall is the latest blemish on the stainless steel behemoths, a signature vehicle for Elon Musk's electric auto company.
It comes as the brand encounters consumer blowback in the wake of Musk's key advisory role in President Donald Trump's administration.
Tesla received two field complaints in January about the issue, but company engineers determined there was no problem.
Then in February, the NHTSA notified Tesla of another complaint.
The company, which also cited social media postings on the issue, undertook another investigation that led to a voluntary recall, said Tesla, which will use a different adhesive to attach the part.
As of March 14, Tesla had 151 warranty claims that may be related to the condition. The company said it knows of no accidents.
Demand for the Cybertruck and other Tesla vehicles has tumbled in recent weeks in many consumer markets as Musk presses on with deep cuts in US government departments and staffing through his Department of Government Efficiency.
Analyst Dan Ives of Wedbush Securities called for Musk to clearly define how he will balance his role with Trump and his duties as Tesla CEO.
"Let's call it like it is: Tesla is going through a crisis and there is one person who can fix it....Musk," said Ives, who argued that Musk must provide details on when new vehicles will arrive in dealerships and about a plan for autonomous driving in Texas.
"The violence at Tesla dealers, cars being keyed in parking lots, social movements against Musk around the globe...have all created a massive overhang for Tesla's stock," Ives said. "This is a moment of truth for Musk."
Tesla shares fell in early trade Thursday.
O. Petrow--BTZ
