Tesla Inc. (NASDAQ: TSLA) is recalling nearly all Cybertrucks in the United States due to a potentially dangerous exterior panel defect. The recall impacts over 46,000 vehicles produced between November 2023 and February 27, 2025, according to a filing with the National Highway Traffic Safety Administration (NHTSA) on Thursday.
🔥 Cybertruck Recall Sparks Safety Concerns
The recall addresses a defect where a stainless-steel exterior trim panel may detach while driving, creating a road hazard and increasing the risk of accidents.
- Tesla has acknowledged 151 warranty claims potentially linked to the issue but stated there have been no crashes or injuries reported.
- The NHTSA flagged the defect after receiving a vehicle owner’s complaint about a rail panel detachment on February 21.
- Customers may experience unusual cabin noise or notice the panel loosening before it fully separates.
🚗 Tesla’s solution:
The company will replace the rail panel assembly with a more durable version that meets its safety and performance standards.
📉 Tesla Stock Slumps Amid Mounting Challenges
Tesla’s stock price fell 1.4% in premarket trading following the recall announcement. The EV maker’s shares have already plunged nearly 42% this year, weighed down by:
- Rising competition from EV rivals.
- An aging vehicle lineup with fewer new releases.
- Backlash against CEO Elon Musk’s political affiliations, notably his role in the Trump White House overseeing federal spending cuts.
⚠️ Tesla Leads US Recalls in 2024
According to recall management firm BizzyCar, Tesla topped the list of US vehicle recalls in 2024, accounting for 5.1 million callbacks.
- Most previous recalls were resolved via over-the-air (OTA) software updates, but the Cybertruck’s exterior defect requires a physical fix.
- The recall impacts a significant portion of Cybertrucks on the road, highlighting quality control concerns for the EV giant.
📊 Cybertruck’s Struggling Demand Adds to Tesla’s Woes
Despite its futuristic design, the Cybertruck’s demand has already shown signs of weakness:
- Deliveries slowed toward the end of 2024, with analyst estimates suggesting that the recall covers most Cybertrucks currently in operation.
- Sales boycotts and protests at Tesla stores across the US have emerged, driven by Musk’s controversial political influence.
🔎 What’s Next for Tesla?
While the recall poses a short-term setback, analysts warn that Tesla’s long-term reputation could suffer from mounting recalls, production challenges, and increasing public scrutiny of Elon Musk’s political affiliations.
Stay tuned for further updates on the recall and its impact on Tesla’s sales, stock price, and brand reputation.
