Tesla Recalls Over 475,000 Electric Cars Due to Safety Concern

The shares of Tesla are down by less than 1% today after the company recalled nearly half a million electric vehicles due to safety issues.

Tesla Recalls Thousands of Model 3 and S Electric Cars

Electric car manufacturer Tesla has recalled more than 475,000 of its Model 3 and Model S vehicles to address rearview camera and trunk issues that increase the risk of crashing. The United States road safety regulatory agency, the National Highway Traffic Safety Administration (NHTSA), announced this earlier today. The announcement led to a decline in Tesla’s share price over the past few hours.

The regulatory agency is discussing another camera issue with Tesla while also looking at the company’s river assistant system and other issues. Tesla had to recall more than 475,000 Model 3 and S vehicles manufactured between 2014 and 2021.

Tesla is recalling 356,309 2017-2020 Model 3 vehicles to tackle the rearview camera issues and 119,009 Model S vehicles due to front hood problems. NHTSA said, “for the 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 electric vehicle manufacturer said it is not aware of any crashes, injuries or deaths related to the issues related to the recall of Model 3 and Model S cars.

TSLA Dips Following Recall Announcement

The shares of Tesla are down by 0.27% since the US market opened a few hours ago. At press time, TSLA is trading at $1,083 per share. TSLA has underperformed over the past month as CEO Elon Musk sold 10% of his shares in the electric vehicle manufacturer.

Musk announced last week that he is done selling his shares in the company. Despite its recent poor performance, TSLA has performed excellently this year. TSAL’s value has increased by 53% year-to-date, making it one of the top-performing car manufacturers this year.