Tesla, the electric vehicle manufacturer led by billionaire Elon Musk, has announced the recall of nearly 700,000 vehicles due to issues related to the tire pressure monitoring system warning light. The recall encompasses certain models including the 2024 Cybertruck, 2017-2025 Model 3, and 2020-2025 Model Y vehicles. The National Highway Traffic Safety Administration (NHTSA) reported on Thursday, stating the warning light “may not remain illuminated between drive cycles, failing to warn the driver of low tire pressure.”
This lack of alert could potentially lead to driving with under-inflated tires, significantly increasing the risk of accidents. The NHTSA noted, “driving with improperly inflated tires increases the risk of a crash.” Tesla has responded to the issue by issuing a free over-the-air software update, aiming to resolve the problem without needing physical repairs for the vehicle owners.
The recall affects around 694,000 vehicles and notification letters are expected to be mailed out on February 15, 2025. This is not the first time Tesla has faced challenges this year, with prior recalls related to their vehicles’ performance and safety features. Notably, the Cybertruck alone has seen seven recalls during this same period.
Most recently, the attention turned to the Cybertruck with issues including “a fault in the drive inverter,” which posed the risk of loss of drive power. Approximately 2,400 units were involved, and Tesla indicated they would replace the drive inverter free of charge. Prior to this, the company issued recalls for over 1.8 million vehicles due to hood issues—specifically how the hoods could inadvertently pop open—and even earlier, more than two million cars were recalled due to warning lights on the instrument panel being deemed too small.
The recall came at a challenging time for Tesla, reflected by its stock price. Following the announcement, Tesla saw its stock dip by over 12% within three days, erasing more than $188.9 billion off its market value. The stock closed at $421.06 per share, with the total market cap reaching $1.35 trillion. Analysts attribute this decline to concerns over multiple recalls as well as the overall market volatility impacting investor sentiment.
This year has proven difficult for Tesla to maintain its delivery momentum. The global electric vehicle market has experienced declines, particularly driven by consumers expressing concerns about vehicle range, pricing, and charging infrastructure. Yet, amid the recall chaos, Tesla reported its first quarterly increase this year, delivering 462,890 cars from July to September, which marked progress from the 435,059 units sold during the same timeframe last year. These numbers were bolstered by financing offers as low as 1.99% along with competitive leasing options for the Model 3, Tesla's most affordable vehicle.
Despite faced with several recalls, the company continues to push forward. Yet, the recurring issues with the Cybertruck have raised eyebrows—especially as concerns emerged not just about safety but also about design flaws. One customer even highlighted potential risks with the Cybertruck's headlights being obstructed by snow accumulation, raising serious safety questions.
Elon Musk has faced scrutiny not only for these recalls but also concerning more severe allegations, such as those resulting from crashes involving the so-called autopilot feature, where families have sought legal remedies following tragic incidents.
Looking at the bigger picture, these recalls put pressure on Tesla to maintain not just market position but also consumer trust as the electric vehicle sector evolves. They highlight the challenges inherent to rapid technological advancement and the pressing need for stringent safety protocols. Moving forward, Tesla’s ability to rectify these issues swiftly and efficiently will be even more important to quell investor anxieties and restore confidence among consumers.
These events encapsulate the balancing act Tesla must navigate—how to innovate and lead within the auto industry, all the time ensuring the safety and satisfaction of its customers.
