Tesla announced a recall for all 3,878 Cybertruck vehicles due to an issue with the accelerator pedal that could potentially lead to unintended acceleration, posing a significant risk of crashes. This recall involves the accelerator pedal becoming dislodged and becoming trapped in the trim above it. This problem affects every Cybertruck that Tesla has delivered so far.
Tesla Recalls All Cybertrucks to Address Accelerator Pedal Issue
Tesla began deliveries of the Cybertruck in December 2023, and to date, approximately 4,000 trucks have been delivered. In contrast, Rivian delivered 13,588 trucks in the first quarter of 2024 alone. Despite the setback from the recall, Tesla appears to be on track to meet the annual estimate of 35,000 Cybertruck deliveries for 2024, although this is still below the street’s expectations of around 50,000.
The cost of the recall is estimated to be around $775,000, which breaks down to about $200 per truck. This expense will cover modifications to the accelerator pedal pad to prevent it from becoming stuck. Tesla plans to replace or rework the accelerator pedals on all affected vehicles at no charge to the owners.
But there is a temporary fix for this, refer to the below image:
Interestingly, Tesla’s stock has seen only a modest decline of 0.4% today, in contrast to a 1.4% drop in the Nasdaq. This suggests that investors might be becoming desensitized to negative news from Tesla, possibly due to the frequency of such incidents or confidence in the company’s ability to manage and mitigate these issues effectively.
This is not the first recall for the Cybertruck as earlier this year, Tesla issued a recall due to software issues related to the size of warning lights on the vehicle’s dashboard. Furthermore, in the first quarter of 2024 alone, Tesla had three recalls that affected approximately 2.4 million vehicles. While most Tesla recalls are typically resolved through software updates, the physical nature of the current accelerator pedal issue necessitates a more hands-on approach.
Conclusion
Tesla’s proactive approach to the accelerator pedal issue reflects its commitment to customer safety and regulatory compliance. Although the recall is a setback, it appears to be a manageable one within the broader context of Tesla’s operations and growth trajectory. As Tesla continues to address these challenges, the market’s relatively muted reaction indicates ongoing investor confidence in the electric vehicle pioneer’s long-term prospects.
