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Tesla recalls nearly all Cybertrucks in US over detaching panels

Tesla recalls nearly all Cybertrucks in US over detaching panels

  • 21.03.2025 00:43
  • rnz.co.nz
  • Keywords: Recall, Safety Issue, Tesla

Tesla recalls nearly all Cybertrucks in the US due to a defect where an exterior panel can detach, increasing crash risk. The issue stems from an adhesive susceptible to environmental damage. Tesla will use a different adhesive to fix the problem.

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Estimated market influence

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Analyst rating: Neutral

The company is recalling Cybertrucks due to a defect, which could harm its reputation and sales.

Context

Tesla Cybertruck Recall Analysis

Recall Details

  • Number of Recalled Vehicles: Over 46,000 Cybertrucks in the United States.
  • Defect Cause: Adhesive used for attaching the "cant rail" panel is susceptible to environmental embrittlement, leading to detachment.
  • Risk: Detachment creates a road hazard, increasing crash risk for following motorists.
  • Timeline:
    • Two field complaints received in January.
    • NHTSA notified Tesla of another complaint in February.
    • As of March 14, 151 warranty claims related to the issue were reported.

Market Impact

  • Demand Drop: Cybertruck and other Tesla vehicle demand has declined recently.
  • Brand Reputation: Recall highlights quality concerns, potentially harming Tesla's brand image.
  • Consumer Backlash: Negative consumer sentiment linked to Elon Musk's role in Trump administration and his management style.

Competitive Landscape

  • Rivian and Ford Competition: Tesla faces stiff competition from Rivian and Ford's electric vehicle (EV) lineup.
  • Analyst Concerns: Analyst Dan Ives of Wedbush Securities warns of instability in Tesla's leadership and execution.

Long-Term Implications

  • Strategic Focus Needed: Musk must balance roles as CEO and political advisor to stabilize Tesla's position.
  • Stock Volatility: Recall and broader issues could impact investor confidence, affecting stock performance.

Regulatory Considerations

  • NHTSA Investigation: Ongoing scrutiny of safety standards and manufacturing processes in the EV industry.

This recall underscores challenges Tesla faces in maintaining quality and reputation amidst intense competition and leadership concerns.