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Tesla announces recall of most Cybertrucks in the US, citing wiper and exterior trim issues.

Tesla announces recall of most Cybertrucks in the US, citing wiper and exterior trim issues.

TraderKnowsTraderKnows
2024-06-26
Summary:This Tuesday, Tesla officially announced a recall of most Cybertruck vehicles in the United States, although this model has not yet gone into mass production and sales.

Tesla announced on Tuesday that it will recall most of its Cybertruck vehicles in the United States due to issues with the windshield wipers and exterior trim. This is the latest setback for the futuristic truck, with mass production expected to begin next year.

Vehicle recalls are not uncommon for new models, but for Tesla, such physical recalls are relatively rare as most issues are typically resolved through over-the-air software updates.

The Cybertruck is Tesla CEO Elon Musk's answer to critics who say the company needs to update its aging vehicle lineup. High interest rates have dampened consumer demand, and Tesla has been slow to introduce new models, while Chinese competitors have launched more affordable options.

This recall involves more than 11,000 vehicles. Tesla has not disclosed the exact number of vehicles already delivered to consumers in its quarterly delivery and production report.

Tesla's stock rose 1.4% in early trading to $185.12.

Sam Abuelsamid, an analyst at Guidehouse Insights, stated, "The wiper motor failure is not surprising."

"This is the largest single wiper used on a light vehicle, with a blade up to 4 feet (1.22 meters) long. This unusually long lever arm puts a lot of stress on the motor, and there have been many rumors of failure since the start of production," he added, noting that the overall build quality of the Cybertruck is "quite poor."

After years of delays and difficult production ramp-ups, Tesla began delivering the Blade Runner-inspired truck in November 2023. Musk has described this process as akin to Tesla digging its own grave.

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The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

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