Tesla Recalls Nearly 2 Million Vehicles Due to Hood Issue

Tesla is initiating a significant recall of approximately 1,849,638 vehicles due to a software glitch affecting the hood latch assembly. This recall involves several models, including the 2021-2024 Model 3, Model S, and Model X, along with the 2020-2024 Model Y.

According to the National Highway Traffic Safety Administration (NHTSA), the software could fail to detect the unlatched hood. “An unlatched hood can fully open, obstructing the driver’s view and increasing the risk of a crash,” the recall notice stated.

To resolve this issue, Tesla has deployed a free over-the-air (OTA) software update, according to The Washington Post. This update will be delivered to affected vehicles at no cost to the owners without the need to bring their cars to physical locations, making it a convenient and efficient remedy.

Tesla plans to notify vehicle owners through letters, which are expected to be mailed out starting Sept. 22, 2024. Owners who receive these notifications should follow the instructions provided to ensure their vehicles are updated. For further assistance or questions, Tesla customer service can be reached at 1-877-798-3752. The company’s recall reference number for this issue is SB-24-00-012.

Furthermore, Tesla, led by Elon Musk, is facing significant challenges as the electric vehicle (EV) market becomes more competitive. Chinese automaker BYD has surged ahead, becoming the largest EV producer since late 2023, thanks in part to investments from Warren Buffett. This rise has intensified global concerns about Chinese dominance in key markets like the U.S., leading to discussions about trade barriers.

Tesla’s profits have taken a hit, with a 40% year-over-year drop in Q2 profits, falling to $1.8 billion, or 52 cents per share. This led to a 12% drop in Tesla’s share price and marked the company’s first-ever consecutive quarters of declining sales volume, with Q2 being the second straight quarter of year-over-year sales declines.

In response, Tesla is accelerating the launch of more affordable EV models, initially planned for late 2024, to combat its 9% revenue and vehicle delivery drop in Q1. This move is part of a broader strategy to address declining sales, including price cuts, new $25,000 models, and a 10% workforce reduction to improve efficiency and profitability.