Tesla’s Model X will be recalled, a total of 54,676 vehicles made between 2021 and 2023. The Tesla model X recall is due to safety issues, due to reported failures to detect and display a warning light for low brake-fluid levels. The electric vehicle (EV) maker, Tesla issued a free OTA (over-the-air) software update for the problem.
Over 54,000 Tesla’s Model X have been recalled for a simple, brake fluid indicator light, making this one of the most infuriating recalls for any company to deal with. Tesla (TSLA) shares were down in early trading on Tuesday before it rebounded later in the session after the National Highway and Traffic Safety Administration (NHTSA) said the electric vehicle (EV) maker will recall certain Model X vehicles from 2021-2023.
Tesla model X recall
The Tesla model X recall was for safety concerns as the vehicles’ controllers may not properly detect low brake-fluid levels, potentially leading to a failure to display a warning light, according to NHSTA on Tesla safety issues. Tesla has issued a free OTA software update to address the potential safety issue and said owners will receive notification letters by Dec. 12, 2023. The NHSTA said Tesla wasn’t aware of any related crashes, injuries, or deaths, as of Oct 10
“Tesla is not aware of any crashes, injuries or deaths that may be related to this condition,” according to the NHTSA.
Tesla’s earlier recalls
Earlier this year, the EV maker, Tesla had to recall 362,758 Model X, Model S, and Model Y vehicles because of reported issues related to its experimental driver-assistance software. The Full Self-Driving Beta system raised safety concerns related to navigating intersections and had trouble responding appropriately to required changes in speed limits. In this case, Tesla released a free over-the-air software update as well.3
The NHTSA received 12 complaints alleging loss of steering control and power steering in the vehicles.
A Model Y owner complained that the “wheel jerked hard right and made a thud”.
Tesla is currently facing several defect investigations by the NHTSA.
Tesla Q3 results
Tesla’s Q3 results will be posted on Wednesday after the closing bell. The EV maker slashed prices in the Q3, which could put pressure on its gross margins. Planned factory shutdowns for an upgrade also led to a decline in production and delivery volumes in the most recent quarter.
Tesla share update
Tesla shares fell down in early trading on Tuesday following the news, before rebounding later in the session. Shares of Tesla were 0.8% higher as of 12:30 p.m. ET on Tuesday and have more than doubled year-to-date.
Tesla’s annual target of record delivery
The latest cuts come as the company strives hard to deliver a record 476,000 vehicles in the last three months of 2023 to meet the annual target of handing over 1.8 million vehicles.
Tesla’s price cut
The price cuts by Tesla – now by about 2.7% to 4.2% – started in January to support sales in an uncertain economy and fend off competition from US automakers such as Ford and China’s BYD.
The standard Model 3 sedan is now $1,250 cheaper at $38,990, while the Model Y long-range variant costs $2,000 less at $48,490, the automaker’s website showed.
Tesla also cut prices for its higher-priced variants of the two models.
Overall, the standard Model 3’s prices have come down by about 17% since the start of the year, while the Model Y long-range variant has seen a drop of over 26%.
