Tesla Slammed With Multiple Recalls In Europe, The US

Tesla (NASDAQ: TSLA) has been hit with a string of recalls in recent days. The recalls, which have occurred both in North America and Europe, add further strain to the firm whom has been subjected to production shutdowns in China as of late as well.

The recalls started on March 31, when the company saw Germany hit the firm with a recall on Model Y’s produced between June 16, 2020 and November 1`0, 2021. The recall relates to “incorrectly manufactured steering knuckles,” which could potentially break, resulting in loss of control of a vehicle.

The recall is suspected to impact up to 23,437 Model Y’s produced during this time period, however Tesla itself has reportedly only recalled 129 vehicles in Germany for this issue. Similar measures have also reportedly been taken in France and Slovenia, as per the European Commission’s Safety Gate Alerts system.

Two weeks later, another recall was issued in the EU for Tesla vehicles, this time the Model S and Model 3, for vehicles produced between 2014 and 2021. Apparently, there is a risk of the hood of the vehicle being released at high speeds. Vibrations between the hood and radiator grill are evidently caused by an air inlet on the front of the vehicle at high speeds, which sometimes results in stress fractures on the hood latch striker. Ultimately, this leads to the latch failing and the hood opening at speed.

Specifically, this recall was issued in France, however similar issues have also reportedly been found in the Netherlands as well, as per the recall notice. Current estimates peg 443,476 vehicles as being impacted thus far, of which 84,147 are Model S and the remainder Model 3’s. The recall follows a recall issued by the NHTSA in December for the same issue, however that only applied to Model S vehicles, of which 119,009 vehicles were potentially impacted.

Also on Thursday, the company was hit by an NHTSA recall in the US related to its “Boombox” feature, which is expected to impact 595,000 vehicles and relates to the vehicles ability to play sound through its external speakers. The speakers are intended to be used for the pedestrian warning system, a requirement for all-electric vehicles. Under that regulation, only the automaker is allowed to modify the audible alert.

The recall applies to Model Y, X, and S vehicles produced between 2020 and 2022, as well as Model 3 vehicles produced between 2017 and 2022. This appears to be a rather minor recall however, with an update to be issued via an over the air software update to the impacted vehicles.

This brings us to yesterday, when a recall on Model X vehicles was issued by the company in the US. This latest recall is focused on the front-row side airbags, which may not properly deploy in the event of a collision. An estimated 7,289 vehicles are impacted.

It’s currently unclear what the total financial impact will be to the company following the recalls.


Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Views expressed within are solely that of the author. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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