Tesla's Unhappy New Year

The electric vehicle maker said problems with its rear-view cameras and 'front trunks' may increase the risk of collisions

Ollie Smith 31 December, 2021 | 11:09AM
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Tesla (TSLA) is to recall around 475,000 of its electric vehicles (EVs) after identifying problems with their rear-view cameras and "front trunks".

Yesterday, shares in the Texas-headquartered company were on the slide as investors responded to documents filed by the firm with the US National Highway Traffic Safety Administration.

The recall supposedly affects around 356,309 Model 3 vehicles manufactured between 2017 and 2020, and around 119,009 Model S vehicles, the federal regulator said.

The Model 3 is at higher risk of collision because of potential wear and tear on its rear-view camera cable caused by repeated opening and closing of its boot door, Tesla said. The Model S, meanwhile, has a "front trunk" that is liable to open at random blocking drivers' view of the road ahead.

That said, the company says it is not aware of any actual crashes resulting from the defects.

The product recall is not the first production issue the EV maker has faced. According to Tesla's website, other voluntary recalls involving the Model X and Model S have ensured the motor bolt on its cars' steering assist and seat belts function properly.

Despite such teething issues, Morningstar notes that Tesla is now the fifth-largest stock in the US. The 18-year-old company, which went public in 2010, now has a market value that exceeds Warren Buffett’s Berkshire Hathaway (BRK.B), Johnson & Johnson (JNJ), and Home Depot (HD).

 

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Ollie Smith  is editor of Morningstar UK