Latest stock market news. Tesla recalls almost half a million electric cars over safety issues.
“Tesla Inc is recalling more than 475,000 of its Model 3 and Model S electric cars to address rearview camera and trunk issues that increase the risk of crashing, the U.S. road safety regulator said on Thursday.
The National Highway Traffic Safety Administration (NHTSA) has been discussing another camera issue with the automaker, while probing the company’s driver assistant system.
The model years affected in the recall range from 2014 to 2021, and the total number of recalled vehicles is almost equivalent to the half a million vehicles Tesla delivered last year.
Around 200,000 Tesla vehicles will be recalled in China, the country’s market regulator said on Friday.
The U.S. electric vehicle manufacturer is recalling 356,309 2017-2020 Model 3 vehicles to address rearview camera issues and 119,009 Model S vehicles due to front hood problems, the federal regulator said.
Tesla could not be reached for comment.
For Model 3 sedans, “the rearview camera cable harness may be damaged by the opening and closing of the trunk lid, preventing the rearview camera image from displaying,” the NHTSA said.
Tesla identified 2,301 warranty claims and 601 field reports regarding the issue for U.S. vehicles.”
This recall is bad news for Tesla and its stock. TSLA stock is up 51.68% in 2021. Other than a hit to its brand name related to reliability as a premium EV automaker the additional costs for this recall are expected to be significant.
Stock market futures
At 5:06 AM ET Time, Friday, December 31, 2021, the US stock market futures are flat.
S&P Futures: 4,767.75,-4.50(-0.09%)
Dow Futures: 36,266.00,-25.00(-0.07%)
Nasdaq Futures: 16,409.75,-20.50(-0.12%)
Russell 2000 Futures: 2,244.00,-2.90(-0.13%)
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