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Tesla (TSLA) Initiates 2 Recalls on Faulty Airbags, Tail Lights
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In a recent setback, Tesla Inc. (TSLA - Free Report) announced that it has recalled nearly 30,000 Model X cars in the United States over an issue of the faulty deployment of airbags.
There was a probability that the airbag was deployed incorrectly in specific low-speed collision events whereby a young front seat passenger ran the danger of being unbelted and out of position, increasing the risk of injury. Tesla initially detected the fault in the affected Model X units during a pre-scheduled Conformity of Production test on Oct 18, 2022, and by Nov 8, it confirmed the results.
The problem will be addressed through an over-the-air software update, as is the most common mitigation measure by the EV king. Tesla will deploy the over-the-air firmware update to affected vehicles free of cost to ensure that the airbag complies with accepted guidelines.
In another news, Tesla has decided to recall 321,628 vehicles over a software issue that causes the tail lights on some cars to malfunction. The glitch may affect one or both taillights on certain Model 3 and Model Y vehicles.
The recall covers certain 2020 to 2023 Model Y SUVs and 2023 Model 3 sedans. However, brake lamps, backup lamps and turn signal lamps will be unaffected by the software problem.
The automaker, like in the earlier recall, will fix the problem through an online software update. Owners will be notified by letter starting Jan 14.
The issue came to light last month after Tesla received complaints, primarily from customers outside the U.S., of tail lamps not illuminating. The company completed an investigation into the problem earlier this month.
As of Nov 14, Tesla received three warranty claims related to the problem but was unaware of any related crashes or injuries.
Earlier in the month, the company recalled more than 40,000 Model S and Model X vehicles that ran the risk of experiencing a loss of power steering assist when driving on rough roads or after hitting a pothole.
Tesla is indeed the undisputed EV player in the industry, but recalls continue to hurt this auto giant amid its constant push for high-efficiency technology.
Shares of TSLA have lost 53.3% in a year compared with the industry’s 54.2% decline.
CarParts has an expected earnings growth rate of 85% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 72.7% upward over the past 30 days.
Allison has an expected earnings growth rate of 26.1% for the current year. The Zacks Consensus Estimate for ALSN’s current-year earnings has been revised 3.8% upward in the past 30 days.
Genuine Parts has an expected earnings growth rate of 18.1% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 2.6% upward over the past 30 days.
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Tesla (TSLA) Initiates 2 Recalls on Faulty Airbags, Tail Lights
In a recent setback, Tesla Inc. (TSLA - Free Report) announced that it has recalled nearly 30,000 Model X cars in the United States over an issue of the faulty deployment of airbags.
There was a probability that the airbag was deployed incorrectly in specific low-speed collision events whereby a young front seat passenger ran the danger of being unbelted and out of position, increasing the risk of injury. Tesla initially detected the fault in the affected Model X units during a pre-scheduled Conformity of Production test on Oct 18, 2022, and by Nov 8, it confirmed the results.
The problem will be addressed through an over-the-air software update, as is the most common mitigation measure by the EV king. Tesla will deploy the over-the-air firmware update to affected vehicles free of cost to ensure that the airbag complies with accepted guidelines.
In another news, Tesla has decided to recall 321,628 vehicles over a software issue that causes the tail lights on some cars to malfunction. The glitch may affect one or both taillights on certain Model 3 and Model Y vehicles.
The recall covers certain 2020 to 2023 Model Y SUVs and 2023 Model 3 sedans. However, brake lamps, backup lamps and turn signal lamps will be unaffected by the software problem.
The automaker, like in the earlier recall, will fix the problem through an online software update. Owners will be notified by letter starting Jan 14.
The issue came to light last month after Tesla received complaints, primarily from customers outside the U.S., of tail lamps not illuminating. The company completed an investigation into the problem earlier this month.
As of Nov 14, Tesla received three warranty claims related to the problem but was unaware of any related crashes or injuries.
Earlier in the month, the company recalled more than 40,000 Model S and Model X vehicles that ran the risk of experiencing a loss of power steering assist when driving on rough roads or after hitting a pothole.
Tesla is indeed the undisputed EV player in the industry, but recalls continue to hurt this auto giant amid its constant push for high-efficiency technology.
Shares of TSLA have lost 53.3% in a year compared with the industry’s 54.2% decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
TSLA currently has a Zacks Rank #3 (Hold).
Here are some better-ranked players in the auto space –CarParts.com (PRTS - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Allison Transmission Holdings (ALSN - Free Report) and Genuine Parts Company (GPC - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
CarParts has an expected earnings growth rate of 85% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 72.7% upward over the past 30 days.
Allison has an expected earnings growth rate of 26.1% for the current year. The Zacks Consensus Estimate for ALSN’s current-year earnings has been revised 3.8% upward in the past 30 days.
Genuine Parts has an expected earnings growth rate of 18.1% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 2.6% upward over the past 30 days.