Amidst the whirl of Tesla’s tumultuous journey, the National Highway Traffic Safety Administration (NHTSA) thundered an announcement: 125,227 Tesla vehicles in the U.S. are vulnerable to a seat belt warning system glitch, turning vehicle safety on its head. This malfunction raises the specter of heightened injury risk in the event of a collision.
Unpacking Tesla’s Vehicle Recall
The NHTSA exposed the chink in Tesla’s armor – the failure to meet federal safety standards, with seat belt warning lights and sounds staying dormant when the driver remains unbuckled. Tesla’s safety recall will jolt certain Model S vehicles from 2012 to 2024, Model X vehicles ranging from 2015 to 2024, with additional scrutiny on Model 3 and Model Y editions.
In a bid to course-correct, Tesla plans an over-the-air software update set for June. The EV giant’s eyes are fixed on eliminating reliance on the driver seat occupancy sensor, opting instead for seat belt reminder signals triggered solely by the driver seat belt buckle and ignition status.
Tesla’s Growing Pains with Vehicle Recalls
Tesla’s liaison with the NHTSA has been teetering on rocky ground. In a stormy April episode, the U.S. auto safety watchdog probed Tesla’s memory, examining whether a recall involving over 2 million vehicles last December, pertaining to Autopilot enhancements, offered ample protection post numerous mishaps.
Adding to the list of bumps, January saw Tesla summoning 200,000 Model S, X, and Y vehicles due to a software bug impairing driver visibility while reversing. In April, Tesla did a U-turn by recalling 3,878 Cybertrucks due to a loose accelerator pedal pad.
Diving into the Crystal Ball: Tesla’s Stock Forecast
The crystal ball remains foggy for TSLA stock. Market seers maintain a lukewarm Hold stance, a melange of nine Buys, 14 Holds, and nine Sells. 2024 has been a tempestuous ride for TSLA, with its value hurtling down by over 25%. The average price target of $174.60 signals a looming 2.7% downside from current levels, beckoning a strategic rethink among Tesla’s flock of investors.