Technology
Tuesday, June 25th, 2024 4:58 pm EDT
Key Points
- Cybertruck Recalls: Tesla has issued two additional recalls for the Cybertruck, addressing issues with trim pieces that can detach and faulty motor controllers in the windshield wipers, which require physical repairs at Tesla service centers.
- Production and Market Challenges: Despite a slow start with only 11,688 Cybertrucks on the road since November 2023, Tesla reports a production capacity exceeding 125,000 per year and recently achieved a record of 1,300 shipments in a week. The Cybertruck competes with the Ford F-150 Lightning and Rivian R1T in the U.S. pickup market.
- Broader Company Struggles: Tesla has faced a challenging first half of 2024, with a 25% drop in stock price and declining sales due to an aging lineup, increased competition, and brand issues partly attributed to Elon Musk’s controversial behavior. The company is undergoing restructuring, including a significant reduction in workforce, and is expected to report second-quarter production and delivery numbers soon.
Tesla has issued two more recalls for its Cybertruck pickups in the U.S., adding to the challenges the automaker faces with its newest electric vehicle, about six months after beginning deliveries. These latest recalls, the third and fourth for the Cybertruck, necessitate physical repairs typically requiring appointments with Tesla service centers. The first recall addresses issues with trim pieces that can loosen and fall off the truck, posing a road hazard and increasing the risk of injury or collision for other motorists. Tesla plans to replace or rework these trim pieces to ensure sufficient adhesion.
The second recall concerns faulty motor controllers in the front windshield wipers. According to a safety recall report from the National Highway Traffic Safety Administration (NHTSA) dated June 19, the motor controller may fail due to electrical overstress, potentially causing the windshield wipers to stop functioning. This defect can reduce visibility under certain conditions, thereby increasing the risk of a collision. Tesla intends to replace the motor controllers for affected customers.
The Cybertruck, unveiled by CEO Elon Musk four years ago and delayed in production for two years, began limited deliveries in November 2023 during a launch event in Austin, Texas. Musk has promoted the vehicle as a superior blend of a truck and a sports car, with a futuristic design. However, the Cybertruck has encountered several issues since its release. An earlier recall was issued to fix an accelerator pedal problem that could cause unintended acceleration, a defect highlighted in a viral TikTok video by a Cybertruck owner.
The recall for the windshield wiper issue disclosed a vehicle population of 11,688 Cybertrucks from November 13, 2023, to June 6, 2024, indicating a slow initial rollout for Tesla’s first entry into the U.S. pickup market. The Cybertruck competes with the Ford F-150 Lightning and the Rivian R1T. Despite the slow start, Tesla reported in its first-quarter shareholder update that Cybertruck production capacity exceeds 125,000 units per year. During Tesla’s annual shareholder meeting, Musk announced a record of 1,300 Cybertruck shipments in one week.
The Cybertruck troubles are part of a broader challenging period for Tesla. The company’s stock price has dropped by 25% in 2024, and sales have declined due to an aging vehicle lineup, increased competition in China, and brand deterioration attributed partly to Musk’s controversial public behavior. Tesla is undergoing a broad restructuring, including a headcount reduction of at least 14%.
Tesla is expected to report its second-quarter vehicle production and delivery numbers in early July, which will provide further insight into the company’s performance amid these ongoing challenges.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/06/25/tesla-recalls-cybertruck-to-fix-faulty-windshield-wipers-loose-trim.html
