Massive Recall Hits Tesla Cybertruck Amidst Sales Struggles

Tesla is facing its largest recall yet involving the Cybertruck, with over 46,000 units recalled in the US due to concerns that a critical component, known as the cant rail, may detach and pose a safety risk. This move comes as Tesla grapples with declining sales and external pressures, including legal challenges involving incidents of arson against their vehicles. Recent estimates suggest that Tesla sold approximately 39,000 Cybertrucks last year, and this recall affects trucks manufactured from November 2023 onwards. The company has noted that while around 150 customer claims related to this issue were reported, no accidents have been directly attributed to it.

Despite assurances of free repairs under warranty, the recall contributes to a broader narrative of brand damage for Tesla, which has seen its stock decline nearly 40% since January 2023. Critics like analyst Dan Ives highlight that CEO Elon Musk’s involvement in political controversies amplifies the backlash against the brand. The Cybertruck, designed to rejuvenate excitement around Tesla, entered the market at a starting price of over $72,000, aiming to capture the competitive pickup truck market in the US. However, with increasing competition and an ageing vehicle lineup, the company’s struggles show no signs of abating.