Tesla Cybertruck faces major recall amidst stalled sales

Tesla issued a recall for all Cybertrucks in the United States, affecting 46,096 vehicles produced from November 2023. The recall was prompted by a risk of exterior panel detachment, and it is the eighth such action for the Cybertruck since January 2024. This time, a stainless-steel trim panel may loosen or break off during driving, creating a potential hazard. Tesla has reported 151 warranty claims related to this issue, but thankfully, no crashes or injuries have been confirmed.

The recall arrives at the worst time for Tesla. The company's stock value has been falling this year following Elon Musk's political antics, and it faces increasing competition in the electric cars market. The recall further intensifies concerns about the Cybertruck's quality and production.

The body panel in question is held in place by an adhesive which, simply put, can't withstand "environmental factors." Plain English? Tesla used cheap, low-quality glue. The solution involves replacing the rail panel assembly with a redesigned version. The new version will use a different adhesive and a stud welded to the stainless panel, secured with a nut to reinforce the connection. Tesla plans to implement this improved design in production starting Friday, and existing vehicles in its possession will be retrofitted before delivery.

Tesla CEO Elon Musk praised the Cybertruck's "five-star safety rating" during a recent livestreamed meeting. He talked about the vehicle's crash safety and encouraged investors not to sell their stock. Unsurprisingly, he did not directly address the recall itself.

The financial impact of the recall will be minimal for the March quarter. The Cybertruck's sales volume is considerably lower than that of Tesla's Model 3 and Model Y. However, the recall is yet another indication that Cybertruck sales are falling fast. It confirms Tesla has delivered just over 46,000 Cybertrucks since production began - far from the 250,000 expected to be sold every year.

The early estimates for the first quarter of 2025 are showing only 7,000 to 8,000 vehicle deliveries. This is a dramatic drop from the 10,000 to 12,000 vehicles delivered in previous quarters, and it is a huge problem for Tesla, especially considering its ongoing efforts to boost Cybertruck demand.

The company made the vehicle eligible for the $7,500 federal tax credit for EVs and has offered discounts through free Supercharger access and subsidized financing. Tesla even introduced a cheap lease program and free wraps for the Foundation Series. And yet, sales continue to fall, indicating huge problems with the Cybertruck's market reception. Tesla's only hope now lies in the upcoming, more affordable rear-wheel drive (RWD) Cybertruck, expected to start at $61,000 later this year.

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