In a blow to Tesla’s growth strategy, the company is recalling 46,096 Cybertrucks in the U.S. over a safety issue where exterior panels can detach while driving, potentially causing accidents. This recall, part of a series for the Cybertruck, comes as Tesla faces increased competition and economic challenges.

Reuters reports that there have been a number of call-backs for the pickup truck since the beginning of the year, and now Tesla is recalling 46,096 Cybertruck cars in the United States to remedy an external panel that could detach while the vehicle is being driven.

The success of the Cybertruck is considered as important to the expansion of Tesla, which is currently struggling with increased competition and an older lineup. At the same time, consumers are choosing hybrids that are less expensive since they are confronted with high borrowing prices. This could prove to be a setback for Tesla.

According to the notice that was issued by the National Highway Traffic Safety Administration (NHTSA) of the United States on the recalls, the recall that was issued due to problems with a stainless-steel exterior trim panel detaching from the vehicle has the potential to become a traffic hazard, which in turn increases the danger of a collision.

In order to rectify the situation, Tesla’s service will replace the rail assembly at no additional cost.

Even though Tesla does not break out deliveries of its Cybertrucks, the vehicles that have been recalled would constitute the vast majority of the pickups that are now on the road, according to estimations provided by analysts regarding the total number of Cybertruck deliveries.

A number of setbacks have resulted in a decline in demand for the unusual electric pickup truck, which has already exhibited signs of weakness toward the end of the previous year.

During premarket trade, the electric vehicle manufacturer’s stock dropped by close to two percent.

Tesla shares, which were initially lifted after the election owing to Tesla CEO Elon Musk’s association with United States President Donald Trump, have dropped roughly 42 percent this year due to a sluggish electric vehicle market and concerns over Musk’s participation in the government potentially distracting him from managing his firms rather than focusing on his business.

Following the emergence of reactions toward the brand, such as demonstrations at Tesla stores located all across the United States and sales boycotts, analysts have pointed to a change in mood toward the electric vehicle manufacturer from both existing consumers and possible new purchasers.


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