Tesla has announced a recall of nearly all Cybertrucks in the United States, affecting over 46,000 vehicles built between November 2023 and February 27, 2025. This latest recall is due to concerns that a stainless-steel exterior trim panel could detach while driving, potentially posing a road hazard and increasing the risk of accidents. The announcement comes on the heels of increased scrutiny for the electric vehicle (EV) maker, which has seen its stock value tumble by nearly half this year, amidst fierce competition and the fallout from CEO Elon Musk's controversial role in his previous position with the Trump administration.
The National Highway Traffic Safety Administration (NHTSA) informed Tesla of a complaint on February 21, where a vehicle owner reported the detachment of a rail panel. As a result, Tesla is set to replace the rail panel assembly with a more durable variant that meets the necessary testing requirements. Alongside the recall, Tesla has acknowledged 151 warranty claims related to the issue but confirmed that no injuries or collisions have been reported thus far. This proactive move is intended to enhance safety for its consumers, but it raises more questions about the company’s overall product reliability.
Further complicating matters for Tesla is the company’s ongoing public relations struggles. Its stock price fell by 1.4% on March 20, reflecting growing investor concerns. Year-to-date, Tesla shares have sunk by roughly 42%, representing a significant loss in market capitalization and raising alarms over its future profitability against an increasingly competitive backdrop.
Analysts note that despite the company's initiatives to advance its electric vehicle lineup, including the Cybertruck, signs of weakening demand emerged towards the end of last year, with multiple delays further impacting consumer sentiment.
The timing of the recall is particularly problematic as recent unrest involving vandalism at Tesla dealerships has heightened public attention. An online map called DOGEQUEST has surfaced, pinpointing the locations of Tesla owners, dealerships, and Superchargers. This website also features purported contact information for members of the Trump administration’s DOGE team, which Musk leads. The launch of the DOGEQUEST map has coincided with disturbing reports of vandalism against Tesla properties across the country, prompting U.S. Attorney General Pam Bondi to label these acts as: "domestic terrorism.”
Musk vehemently condemned these destructive actions. On social media, he described the DOGEQUEST map as encouraging a wave of violence against Tesla properties. In a tweet, Musk stated, "Encouraging destruction of Teslas throughout the country is extreme domestic terrorism," signaling an aggressive stance against what he termed as unjust and violent behavior towards his company's outreach and infrastructure.
Bondi's office has reported multiple incidents of vandalism, including a recent case where a man carrying a gun and incendiary devices attacked a Tesla location in Las Vegas. Additionally, in Fresno, California, police arrested an individual accused of keying a Tesla car. Such incidents reflect a broader trend of hostility towards Tesla and its supporters, exacerbating Tesla's challenges.
Musk has faced backlash over his alignment with the federal government and its policies, including efforts to cut federal spending, which have caused considerable unrest among customers and the general public. The impact of his engagement in the Department of Government Efficiency, designed to streamline government operations, is said to have contributed to mounting criticism directed toward Tesla and its business practices.
Notably, in less than a year, Tesla's market capitalization has plummeted by about $700 billion—a stark indicator of the company's drastic fall from grace as complaints about vehicle quality and service continue to surface. Concurrently, Tesla has remained in the limelight for its high recall rate: as reported, Tesla topped the list for U.S. recalls in 2024, accounting for a staggering 5.1 million vehicles.
In an interesting twist, Tesla has also utilized social media to promote their security technology. On March 19, they encouraged users to activate their Sentry Mode feature, allowing drivers to monitor their vehicles and capture footage of potential threats. Following a viral video of Tesla cars ablaze in Las Vegas, Musk commented directly on the alarming level of violence, asserting, "This level of violence is insane and deeply wrong. Tesla just makes electric cars and has done nothing to deserve these evil attacks."
As tensions escalate, it remains to be seen how Tesla will respond to the multifaceted challenges it currently faces. The latest recall may serve as a critical test for the company, impacting its already beleaguered reputation among consumers and investors alike. Furthermore, the ramifications from the vandalism incidents and Musk’s involvement with the Trump administration could prove to be significant factors in how the automotive landscape shifts over the coming months.
