Tesla Recalls Vehicles to Address Hood Latch Error, Issues Software Update

Tesla (TSLA) has issued a software update to address a recall over an issue with certain vehicles not alerting the driver that the hood latch is still open, which could lead to the hood opening while the car is in motion, the National Highway Traffic Safety Administration (NHTSA) said.

Recall Affects 1.85 Million Vehicles

Just under 1.85 million vehicles are affected by the recall, NHTSA said, with the recalled vehicles among Tesla’s Model 3, S, and X vehicles produced from 2021 to 2024, along with Model Y vehicles produced between 2020 and 2024.

Issue First Reported in China in March

Tesla first received reports of the hood latch error from vehicles in China starting March 25, and found that the latch switch was deformed, which could lead the vehicle to not detect that the hood was open. The issue seemed to be more prevalent in Tesla’s vehicles in China compared to other regions, according to the NHTSA report.

As of earlier this month, Tesla had only identified three reports of the issue happening in the U.S., and was not aware of any accidents that had taken place because of the defect before initiating the recall.

NHTSA has previously been critical of Tesla’s safety practices, completing an investigation in December that led to the recall of at least 2 million vehicles over concerns with Tesla’s self-driving software.

Tesla shares were down more than 4% in afternoon trading, in line with a broader downturn for tech stocks. Tesla shares have been on a volatile ride this month, boosted initially by optimism about better-than-expected delivery numbers but then hurt by a disappointing earning report last week.

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Conclusion

Tesla has taken swift action to address a recall issue regarding the hood latch error in certain vehicles. With the issuance of a software update, the company aims to ensure the safety of its customers and prevent any potential accidents caused by the hood opening while driving. The recall affects a significant number of vehicles, with Tesla models produced between 2020 and 2024 included in the recall. While the issue appears to be more common in vehicles in China, Tesla is proactively addressing the problem globally.

This recall comes on the heels of previous concerns raised by the NHTSA regarding Tesla’s safety practices, particularly related to the company’s self-driving software. Tesla has faced scrutiny in the past, but the company continues to prioritize the safety of its vehicles and take necessary actions to rectify any potential defects.

Investors have reacted to the news, with Tesla shares experiencing a decline in value. However, it is important to note that stock prices can be volatile, and this decline may be influenced by broader market trends rather than solely the recall issue. Tesla’s stock performance has been subject to fluctuations in recent weeks, driven by various factors such as delivery numbers and earnings reports.

Overall, Tesla’s swift response to the hood latch error recall demonstrates the company’s commitment to ensuring the safety of its customers. By issuing a software update, Tesla aims to address the issue effectively and prevent any potential accidents. Customers who own the affected vehicles are advised to follow Tesla’s instructions and install the software update promptly to ensure their safety on the road.