This could prove to be a setback for Tesla, with the success of the Cybertruck seen as instrumental to its growth, as the company grapples with rising competition and an aging lineup while consumers, faced with high borrowing costs, choose less expensive hybrids.
The recall over issues of a stainless-steel exterior trim panel detaching from the vehicle can become a road hazard, increasing the risk of a crash, according to the US National Highway Traffic Safety Administration’s (NHTSA) notice on the recalls.
As a remedy, Tesla’s service will replace the rail assembly free of charge.
While Tesla does not break out deliveries of its Cybertrucks, the recalled vehicles would represent a vast majority of the pickups on the road based on analyst estimates of total Cybertruck deliveries.
Demand for the unconventional EV pickup has already shown signs of weakness toward the end of last year, following several delays.
Shares of the EV-maker fell close to 2% in premarket trading.
Tesla shares, initially boosted post-election due to Tesla CEO Elon Musk’s relationship with US President Donald Trump, have fallen nearly 42% this year amid a sluggish EV market and concerns over Musk’s role in the government potentially distracting from leading his companies.
Analysts have pointed to a change in sentiment toward the EV maker from existing customers and potential new buyers, as reactions toward the brand such as protests at Tesla stores across the US and sales boycotts emerge.
Tesla – led by billionaire Musk who is also leading efforts to shrink the government as senior adviser for President Trump – accounts for a large portion of recalled vehicles in the US
In 2024, Tesla topped the list for US recalls with its vehicles accounting for 5.1 million call-backs, according to recall management firm BizzyCar. However, most issues for the brand’s cars were usually resolved with over-the-air software updates.
(Edited by : Vivek Dubey)
