Thinking of Buying a Cybertruck?
Think Again.

In a recent development that sent shockwaves through the auto industry, Tesla has issued a recall for all Cybertrucks due to a critical safety concern.

The affected 3,878 vehicles were produced at Tesla’s gigafactory in Austin, Texas, between the beginning of production in November and early April. Let’s delve into the details of this recall and its implications.

The Accelerator Pedal Issue

The National Highway Traffic Safety Administration (NHTSA) raised the alarm after discovering a flaw in the Cybertruck’s accelerator pedal assembly.

When high force is applied to the accelerator, the face of the pedal may dislodge and become trapped by the interior trim.

This malfunction could lead to unintended acceleration, significantly increasing the risk of a crash.

Tesla, known for its cutting-edge technology and innovation, has been swift in addressing the issue.

The company has pledged to replace or repair the accelerator pedal assembly at no charge to affected owners. Letters notifying Cybertruck owners of the recall will be mailed out in June.

The Cybertruck Saga

The Cybertruck, Tesla’s bold foray into the electric pickup truck market, generated immense anticipation and hype. Its angular lines and stainless-steel body is a departure from traditional truck aesthetics, calling to mind a “Mad Max” or “Blade Runner” aesthetic.

However, the road to production has been bumpy.

Initially slated for a 2021 release, the truck faced delays due to production challenges and battery-supply constraints.

Tesla finally began deliveries in late 2023, marking a significant milestone for the company. But this recall, and repeated social media claims of problems with the vehicle, threatens to tarnish the Cybertruck’s reputation.

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Tesla’s Recall History

Though recalls are not uncommon in the automotive industry, Tesla’s high-profile status amplifies their impact. In the first quarter of 2024 alone, Tesla faced three recalls affecting approximately 2.4 million vehicles¹.

It’s worth noting, however, that most Tesla issues are resolved through over-the-air software updates, a testament to the company’s agility in addressing issues remotely.

Ever the innovator, Tesla seems to approach design and development like a software company – create and release a minimum viable product, they correct and update through rapid software updates.

It remains to be seen whether such a strategy is viable for the brand long-term.

In February 2024, Tesla recalled around 2.2 million vehicles in the United States due to an incorrect font size on warning lights.

Around that time, US safety regulators escalated their investigation into Tesla’s vehicles over power steering loss, elevating it to the status of an “engineering analysis.”

The Stock Market’s Reaction

Chart captured via CNBC

Tesla’s stock price has been on a rollercoaster ride lately.

The news of the Cybertruck recall caused shares to drop nearly 3% before the bell on April 19th, capping off a five-session losing streak where the stock lost about 14%.

Investors closely monitor such developments, and Tesla’s ability to swiftly address safety concerns will likely play a crucial role in restoring investor confidence.

What’s Next for TSLA?

As Tesla grapples with this recall, these issues highlight the challenges of pushing the boundaries of innovation in the market.

The Cybertruck recall serves as a reminder that groundbreaking technology often encounters setbacks, and company reaction is make or break.

In the coming months, all Cybertrucks will receive the necessary repairs to ensure they are safe to drive.

Meanwhile, their owners can only hope that the next chapter in the Cybertruck saga brings smoother roads and fewer recalls.

Disclaimer: The information provided in this article is based on available sources and official statements. Readers are encouraged to stay informed through Tesla’s official channels and the NHTSA for any updates related to the recall.

Fiduciary Disclosure: Some members of the Bon Vie team have an investment interest in TSLA.