Tesla nasdaq Tsla Stock Slides Amid Cybertruck Recall News

Tesla (NASDAQ: TSLA) Stock Slides Amid Cybertruck Recall News

Tesla (NASDAQ: TSLA) stock fell more than 3% in the pre-market trading Monday as the company reportedly recalled 3,878 Cybertrucks over an accelerator pedal issue.

Tesla (TSLA) has initiated a recall of 3,878 Cybertruck vehicles over concerns of unintentional acceleration, according to a filing with the U.S. auto safety regulator National Highway Traffic Safety Administration. 

The company said that the accelerator pedal pad on the affected vehicles may dislodge and become trapped by the interior trim above the pedal. This issue could potentially lead to unintended acceleration, wherein the vehicle accelerates without the driver intending to do so.

The EV giant assured that while unintended acceleration may occur, the vehicle will stop once the brake pedal is applied.

Tesla (NASDAQ: TSLA) has pledged to address the issue by replacing or repairing the accelerator pedal assembly free of charge for affected customers. 

Tesla emphasized that there have been no reported collisions or injuries related to the identified pedal issue. However, the company is taking preemptive action to address the potential safety concerns and prevent any future incidents.

The leading EV maker is equipping Cybertrucks currently in production with new accelerator pedals to prevent similar issues from occurring in future vehicles. In addition, the company will apply the remedy to vehicles in the process of delivery before handing them over to customers.

The recall impacts a significant portion of the Cybertruck vehicles Tesla has delivered to date. Kelley Blue Book, an automotive research company, estimates that the EV giant delivered only 2,803 units in the first quarter of the year, although the company does not provide model-specific delivery figures. The company began Cybertruck deliveries on November 30.

Tesla Pauses Cybertruck Deliveries

Last week, The Wall Street Journal reported a temporary halt in Cybertruck deliveries by Tesla, citing potential concerns with the pickup truck’s accelerator pedal. However, CEO Elon Musk swiftly addressed the issue, reassuring customers and the public of the company’s commitment to safety.

In a statement on X, Musk clarified that the decision to pause Cybertruck deliveries was a precautionary measure. He emphasized that that Tesla took action proactively to ensure the safety and well-being of its customers.

Musk wrote,

 “There were no injuries or accidents because of this. We are just being very cautious.”

Tesla (NASDAQ: TSLA) Stock Movement

At the time of this report, the price of TSLA stock stands at $142.65, reflecting a 3.12% decrease from the previous trading session. This week, its value has dropped by 14.03%.