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Tesla (TSLA) Stock Price Slips as Regulators Ask For Recall of 158,000 Vehicles

January 14, 2021 6:21 AM

Shares of Tesla (NASDAQ: TSLA) are trading 1.7% lower in pre-open trade Thursday after the National Highway Traffic Safety Administration (NHSA) asked the electric car maker to recall about 158,000 Model S and Model X units that could potentially suffer from failing display consoles.

These failures have been categorized as safety issues as the backup camera and defogging and defrosting setting controls stop working. Tesla owners have previously complained about the functioning of the media control unit (MCU).

“Failure of the MCU results in loss of the rearview/backup camera2 and loss of HVAC (defogging and defrosting setting controls (if the HVAC status was OFF status prior to failure). The failure also has an adverse impact on the Autopilot advanced driver assistance system (“ADAS”), as well as turn signal functionality due to the possible loss of audible chimes, driver sensing, and alerts associated with these vehicle functions,” it is said in the NHSA letter sent to Tesla.

Vehicles affected are Model S sedans built between 2012 and 2018 and Model X SUVs produced in 2016 through 2018.

“If Tesla decides not to conduct the requested recall, it must provide ODI with a full explanation of its decision, including any additional analysis of the problem beyond Tesla’s past presentations,” it is added in the letter.

It’s now up to Tesla whether it wants to conduct a safety recall. The electric car maker has already implemented “several over-the-air updates in an attempt to mitigate some of the issues described in this letter, but tentatively believes these updates are procedurally and substantively insufficient.”

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