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Tesla (TSLA) Recalls 600K Cars, Resumes Operations at Giga 3
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Tesla Inc. (TSLA - Free Report) has announced more recalls over an issue in its Boombox, a feature that allows drivers to play music while in motion.
The US National Highway Traffic Safety Administration (“NHTSA”) has adjudged the Boombox as non-compliant with safety regulations, as it might drown out alert sounds required for all electric vehicles (EVs). This compromises the safety of drivers and passengers.
The latest recall covers nearly 600,000 of its 2020-2022 Model Y, X, and S vehicles, as well as the 2017- 2022 Model 3 vehicles. This marks the eighth recall in the past five months.
Previously, this month, Tesla announced that it will recall 7,000 Model X SUVs from 2021 to 2022 over an issue with its airbags, which allegedly do not inflate when the car windows are down.
The company has been embroiled in a dispute with NHTSA for quite some time. Last December, the U.S. safety agency forced the automaker to recall nearly half a million vehicles of Model 3 and Model S electric cars from the market because of issues with their rearview camera and trunk.
On Jan 27, the company announced another recall of almost 54,000 of its cars and SUVs from the U.S. market because the vehicles failed to fully halt at stop signs under the Full Self-Driving software. The vehicles involved were Model S sedans and X, SUVs from 2016 through 2022, 2017 to 2022 Model 3 sedans and 2020 through 2022 Model Y SUVs.
Five days later, on Jan 31, the auto giant had to recall 817,000 cars in the United States over an issue with the seat belt alert, likely caused by a software error. This recall impacted vehicles belonging to the 2021-2022 Model S and Model X, the 2017-2022 Model 3, and the 2020-2022 Model Y.
In February, in a span of four days, Tesla issued two recalls. The first one affected 580,000 vehicles over a problem with the Boombox feature, and the second one affected 26,681 vehicles over a problem with its windshield defrosting and defogging systems.
Then, Tesla recalled another 947 cars in the United States after NHTSA pointed out that the rearview image had a delayed display when drivers reversed the cars. Affected models included 2018-2019 Model S, Model X and 2017-2020 Model 3 vehicles equipped with Autopilot Computer 2.5
A full measure of the situation suggests that the latest recall will not be Tesla’s last, and the automaker should brace itself in the coming days.
In another development, Tesla is gearing up to resume production at its Shanghai plant from Apr 18 after receiving approval from local authorities, following a three-week hiatus.
The company's Shanghai factory had suspended production on Mar 28 after a resurgence of Covid-19, which brought in new restrictions and lockdowns.
Sources have reported that the carmaker plans to start with one shift and gradually ramp up.
The latest stoppage marked the longest since the factory started production in late 2019 and resulted in an estimated output loss of more than 50,000 units.
Ongoing production at the plant stands a risk to be impacted by challenges in procuring auto parts, as logistics in the city and surrounding areas have been severely disrupted by the Covid curbs.
Shares of TSLA have gained 37.8% over the past year against its industry’s 0.6% decline.
BRP Group has an expected earnings growth rate of 9.1% for fiscal 2023. The Zacks Consensus Estimate for current-year earnings has been revised around 7.9% upward in the past 60 days.
BRP Group’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. DOOO pulled off a trailing four-quarter earnings surprise of 68%, on average. The stock has declined 10.6% over the past year.
Visteon has an expected earnings growth rate of 109.5% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 13.6% upward in the past 60 days.
Visteon’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed in the remaining. VC pulled off a trailing four-quarter earnings surprise of 209.9%, on average. The stock has declined 19.4% over the past year.
CNH Industrial has an expected earnings growth rate of 2.2% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 0.73% upward in the past 60 days.
CNH Industrial’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. CNHI pulled off a trailing four-quarter earnings surprise of 63%, on average. The stock has risen 2.5% over the past year.
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Tesla (TSLA) Recalls 600K Cars, Resumes Operations at Giga 3
Tesla Inc. (TSLA - Free Report) has announced more recalls over an issue in its Boombox, a feature that allows drivers to play music while in motion.
The US National Highway Traffic Safety Administration (“NHTSA”) has adjudged the Boombox as non-compliant with safety regulations, as it might drown out alert sounds required for all electric vehicles (EVs). This compromises the safety of drivers and passengers.
The latest recall covers nearly 600,000 of its 2020-2022 Model Y, X, and S vehicles, as well as the 2017- 2022 Model 3 vehicles. This marks the eighth recall in the past five months.
Previously, this month, Tesla announced that it will recall 7,000 Model X SUVs from 2021 to 2022 over an issue with its airbags, which allegedly do not inflate when the car windows are down.
The company has been embroiled in a dispute with NHTSA for quite some time. Last December, the U.S. safety agency forced the automaker to recall nearly half a million vehicles of Model 3 and Model S electric cars from the market because of issues with their rearview camera and trunk.
On Jan 27, the company announced another recall of almost 54,000 of its cars and SUVs from the U.S. market because the vehicles failed to fully halt at stop signs under the Full Self-Driving software. The vehicles involved were Model S sedans and X, SUVs from 2016 through 2022, 2017 to 2022 Model 3 sedans and 2020 through 2022 Model Y SUVs.
Five days later, on Jan 31, the auto giant had to recall 817,000 cars in the United States over an issue with the seat belt alert, likely caused by a software error. This recall impacted vehicles belonging to the 2021-2022 Model S and Model X, the 2017-2022 Model 3, and the 2020-2022 Model Y.
In February, in a span of four days, Tesla issued two recalls. The first one affected 580,000 vehicles over a problem with the Boombox feature, and the second one affected 26,681 vehicles over a problem with its windshield defrosting and defogging systems.
Then, Tesla recalled another 947 cars in the United States after NHTSA pointed out that the rearview image had a delayed display when drivers reversed the cars. Affected models included 2018-2019 Model S, Model X and 2017-2020 Model 3 vehicles equipped with Autopilot Computer 2.5
A full measure of the situation suggests that the latest recall will not be Tesla’s last, and the automaker should brace itself in the coming days.
In another development, Tesla is gearing up to resume production at its Shanghai plant from Apr 18 after receiving approval from local authorities, following a three-week hiatus.
The company's Shanghai factory had suspended production on Mar 28 after a resurgence of Covid-19, which brought in new restrictions and lockdowns.
Sources have reported that the carmaker plans to start with one shift and gradually ramp up.
The latest stoppage marked the longest since the factory started production in late 2019 and resulted in an estimated output loss of more than 50,000 units.
Ongoing production at the plant stands a risk to be impacted by challenges in procuring auto parts, as logistics in the city and surrounding areas have been severely disrupted by the Covid curbs.
Shares of TSLA have gained 37.8% over the past year against its industry’s 0.6% decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
TSLA currently carries a Zacks Rank #3 (Hold).
Better-ranked players in the auto space include BRP Group, Inc. (DOOO - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Visteon Corporation (VC - Free Report) and CNH Industrial (CNHI - Free Report) , each carrying a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
BRP Group has an expected earnings growth rate of 9.1% for fiscal 2023. The Zacks Consensus Estimate for current-year earnings has been revised around 7.9% upward in the past 60 days.
BRP Group’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. DOOO pulled off a trailing four-quarter earnings surprise of 68%, on average. The stock has declined 10.6% over the past year.
Visteon has an expected earnings growth rate of 109.5% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 13.6% upward in the past 60 days.
Visteon’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed in the remaining. VC pulled off a trailing four-quarter earnings surprise of 209.9%, on average. The stock has declined 19.4% over the past year.
CNH Industrial has an expected earnings growth rate of 2.2% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 0.73% upward in the past 60 days.
CNH Industrial’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. CNHI pulled off a trailing four-quarter earnings surprise of 63%, on average. The stock has risen 2.5% over the past year.