Tesla Inc. (TSLA) is recalling 218,868 of its most popular models in the U.S. over a software issue that delays the rearview camera image, the second quality-related action for the automaker in recent weeks that raises further questions about its production controls.
The U.S. National Highway Traffic Safety Administration (NHTSA) said on Wednesday that the delayed camera display could reduce driver visibility and increase the risk of a crash. The recall affects certain Model S, Model X, Model 3, and Model Y vehicles. Tesla plans to rectify the problem by deploying an over-the-air (OTA) software update, according to the NHTSA filing.
The software instability is the latest in a series of quality control issues for the electric vehicle pioneer. This large-scale recall comes on the heels of a more critical, albeit smaller, recall for 173 Cybertrucks from model years 2024-2026. In that case, NHTSA documents indicated that brake rotor stud holes could crack, potentially allowing the entire wheel to separate from the hub and cause a complete loss of control.
For investors, the growing list of recalls adds to concerns about production scaling and quality oversight as Tesla faces intensifying competition from both legacy automakers like Ford (F) and a wave of EV startups. While the OTA fix for the camera issue is cost-effective, the Cybertruck recall requires physical replacement of rotors, hubs, and lug nuts, representing a more direct service cost and logistical challenge. The constant stream of recalls could tarnish the brand's reputation for technological leadership and reliability, potentially impacting consumer demand in a competitive market.
This article is for informational purposes only and does not constitute investment advice.
