Back to top

Image: Shutterstock

Tesla to Recall 27K Cybertrucks, Discontinues Model 3 Sedan in US

Read MoreHide Full Article

Tesla, Inc. (TSLA - Free Report) is recalling 27,185 Cybertruck vehicles in the United States due to visibility issues with the rearview camera. This marks the fifth and largest recall for the electric truck, which launched at the end of 2023. 

Per the National Highway Traffic Safety Administration (NHTSA) filing, the recall stems from a software problem causing the rearview display to remain blank for up to eight seconds after shifting into reverse. However, the legal limit required by U.S. regulations is two seconds after shifting into reverse. This delay could reduce visibility and increase the risk of accidents.

The recall affects Cybertrucks manufactured between Nov. 13, 2023, and Sept. 14, 2024, which use specific software for their low-voltage hardware. Following a two-year delay due to production and battery supply issues, Tesla began delivering the Cybertruck in November 2023. The company has not shared Cybertruck’s production or delivery numbers. Since its launch, the Cybertruck, with a price range of $57,390-$96,390, has faced multiple recalls and complaints, including issues with rusting.

Its first recall, in February 2024, covered 2.2 million trucks due to the small font issue on the antilock brake system warning light. Its second recall in April included around 4,000 vehicles for a faulty accelerator pedal. It issued two recalls in June for defective windshield wipers and loose trim. Tesla has offered a free software update that owners can download to resolve the latest issue. The notification letters are expected to be mailed by Nov. 25, 2024.

TSLA Shelves Model 3 Compact Sedan in US Amid High Tariffs

The electric vehicle (EV) maker has discontinued its most affordable Model 3 compact sedan. The Model 3 Standard Range Rear-Wheel Drive, priced at $38,990, featured lithium iron phosphate (LFP) battery cells sourced from China.

The United States recently imposed higher tariffs on imports from China, which include a 100% tariff on EVs and a 25% tariff on EV batteries and key minerals. Also, cars with China-made components like LFP battery cells are no longer eligible for the $7,500 federal tax credit.

Now, Tesla’s most affordable option in the United States is the Model 3 Long Range Rear-Wheel Drive, which is priced at $42,490.

Tesla’s Zacks Rank & Key Picks

TSLA currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the auto space are Ferrari N.V. (RACE - Free Report) , Blue Bird Corporation (BLBD - Free Report) and BYD Company Limited (BYDDY - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for RACE’s 2024 sales and earnings suggests year-over-year growth of 12.33% and 17.94%, respectively. Earnings per share (EPS) estimates for 2024 and 2025 have improved by 10 cents and 14 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.58% and 215.89%, respectively. EPS estimates for 2024 and 2025 have improved by 65 cents and 80 cents, respectively, in the past 60 days.

The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 21.88% and 17.12%, respectively. EPS estimates for 2024 and 2025 have each improved by a penny in the past 30 days.


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in