Tesla recalls over 475,000 vehicles in US - know why

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 Tesla recalls over 475,000 vehicles in US - know why
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Highlights

  • Tesla plans to recall more than 475,000 Model 3 and Model S vehicles in the US.

  • The company said it would recall more than 356,000 Model 3 cars and over 119,000 Model S vehicles due to technical defects.

  • The company said it will fix the issues without any charges.

The Tesla, Inc. (NASDAQ: TSLA) stock gained traction on Thursday after it announced recalling more than 475,000 Model 3 and Model S electric vehicles in the US for technical defects.

The number is almost equivalent to its global deliveries last year.

The company plans to recall all its Model 3 vehicles manufactured between 2017 and 2020, totaling over 356,000 cars. The company has told the National Highway Traffic Safety Administration (NHTSA) that the cable harness for the rear-view camera may be impaired due to the opening and closing of the car trunks that might block the image from displaying.

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According to an NHTSA statement on Thursday, the EV manufacturer will also recall over 119,000 Model S vehicles assembled since 2014 due to a faulty front-trunk latch. The defect may cause the hood to open automatically.

Meanwhile, the company said it would fix the issues without any charges.

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Tesla plans to recall 475,000 vehicles due to technical defects

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Tesla, Inc. (NASDAQ: TSLA) stock performance, financial highlights
 

TSLA shares were traded at US$1091.06 at 1:00 pm ET on Dec 30, up 0.45% from their previous close. Its current market capitalization is around US$1.09 trillion.

Its P/E ratio is 353.89, the forward P/E one year is 258.00, and the EPS is US$3.09. The stock saw the highest price of US$1,243.49 and the lowest price of US$539.49 in the last 52 weeks. Its trading volume was 10,431,813 on Dec 29. The stock surged 48.84% YTD.

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Its revenue was US$13.75 billion in Q3, FY21, an increase of 57% YoY. On a GAAP basis, its net income attributable to common shareholders came in at US$1.61 billion, or US$1.44 per diluted share, compared to US$331 million, or US$0.27 per diluted share in Q3, FY20.

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Bottomline

The National Highway Traffic Safety Administration said that Tesla had identified 2,305 warranty claims that may be related to either of the two defects. However, the EV manufacturer said it is unaware of any crashes, injuries, or deaths linked to the glitches.

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