Recall-Plagued Tesla Calls Back Another 40,000 Cars Over Possible Steering Issue

Topline

Tesla is recalling more than 40,000 vehicles that could possibly lose power steering assist when hitting potholes or driving over bumps, according to a National Highway Traffic Safety Administration (NHTSA) filing, the latest issue to plague the electric carmaker as it comes under increasing regulatory scrutiny after it issued recalls this year covering covering millions of vehicles.

Tesla issued a recall for more than 40,000 vehicles.

AFP via Getty Images

Key Facts

The recall covers 2017-2021 Model S and Model X vehicles that could potentially lose electronic power assist steering when driving over rough roads or hitting potholes, the NHTSA filing said.

The issue is estimated to affect 1% of the 40,168 vehicles involved, the filing said, around 400 cars.

Though the loss of power assisted steering does not affect steering control, the agency said it does require greater effort from the driver and could increase the risk of a crash.

Tesla said it identified 314 alerts for the issue among U.S. vehicles potentially related to the recall but said it was not aware of any injuries or deaths linked to the issue.

The carmaker said it has already issued an update to fix the problem, adding that it has been downloaded by more than 97% of affected vehicles as of November 1.

Key Background

Tesla has been plagued with recalls in recent years and is facing increasing scrutiny from regulators worldwide. In recent years, it has recalled vehicles over rear view camera and trunk defects, failing touchscreens and problems over its windows. The carmaker’s chief executive, billionaire Elon Musk, has vigorously defended the company against accusations it is reneging on its safety obligations and does not take the matter seriously, insisting the company goes further than needed by regulators. Musk has also objected to the term “recall” for the issues, describing the phrase as outdated as cars can often be fixed with a software update rather than physical trip to shop.

Big Number

3.4 million. That’s how many cars have been covered by Tesla’s 17 recall campaigns in 2022, according to Reuters.

What To Watch For

Tesla performance. Shares of Tesla fell 1.4% during pre-market trading on Tuesday morning. Tesla stock has also fallen following the disclosure of other recalls. Shares for the firm are down nearly 50% from this time last year. The company has a market capitalization of more than $655 billion.

Forbes Valuation

$201.3 billion. That’s the estimated net worth of Tesla chief executive and co-founder Elon Musk, according to Forbes’ real-time tracker. Musk, who recently and controversially took over social media platform Twitter for $44 billion, is the richest person on the planet.