Tesla initiates major recall due to software glitches and risks
Tesla, led by Elon Musk, has announced a voluntary recall for safety reasons, affecting over 239,000 of its electric cars. The recall pertains to Model 3 vehicles manufactured in 2024 and 2025, as well as models S, X, and Y from 2023 to 2025.
The reason for the recall is a software issue, which can cause the backup cameras in these vehicles to malfunction. A small percentage of the recalled cars also have a short circuit problem in their computers, increasing the risk of a collision.
Software issues: Tesla recalls cars
Tesla initiated the recall after identifying the problem on November 21, following an increase in the number of car computer replacements due to short circuits.
The UPI agency reported that Tesla engineers conducted an investigation into the malfunction from November 26 to December 20. During the analysis, it was found that low battery power supply voltage, combined with software malfunctions in the recalled vehicles and lower outside temperatures, caused an increase in the secondary current voltage. This phenomenon, known as inductive voltage, led to short circuits in affected components.
So far, this issue has resulted in 887 warranty claims and 68 reports. According to Tesla, they have not received any reports of collisions, injuries, or fatalities related to these issues.
On December 18 the company implemented a software update distributed over the air to the recalled vehicles. Owners do not incur any additional costs. According to Tesla, the short circuit problem should be resolved without the need for further action.
Tesla's stock performance
Earlier this year, after announcing the delivery results for the fourth quarter of 2024, Tesla's stock price fell by over 5%. This marked the first annual downturn in the company's history. The incident involving one of the company's vehicles could have also influenced the stock performance.
It's worth noting that one person died due to a Tesla Cybertruck explosion near the Trump hotel in Las Vegas, where seven people were injured. Tesla CEO Elon Musk stated that the explosion was caused by fireworks or a bomb transported in the trunk of the rented Cybertruck.
According to investment platform data, Tesla's shares rose by 54.27% over the year, although a noticeable correction has occurred recently, with the stock price dropping from about USD 480 to USD 383 (680 CAD to 542 CAD) per share.
CBC analysts mention that Tesla, which once almost single-handedly dominated the electric vehicle market, is now facing significant competition, especially from Hyundai and China's BYD.
