Tesla Inc. is recalling thousands of vehicles in the United States due to a potential battery connection failure. According to the U.S. National Highway Traffic Safety Administration (NHTSA), the recall affects select 2025 Model 3 and 2026 Model Y vehicles, which could cause a loss of driving power and increase the risk of a crash.
Models Affected by the Recall
The recall affects 12,936 vehicles in the U.S. and is limited to the cheaper models of the Tesla lineup, specifically the 2025 Model 3 and 2026 Model Y. These models were introduced as part of Tesla’s strategy to offer vehicles with fewer features at a lower price point.
Background on the Affected Models
The introduction of the lower-priced Model 3 Standard and Model Y Standard vehicles came with fewer features than the traditional models. However, the expiration of the federal electric vehicle tax credit led to consumers actually paying more for these vehicles.
Price Action and Earnings Report
Tesla’s stock closed down 1.08% at $442.60 in the previous session and is currently up 16.69% year-to-date. The company is set to report third-quarter earnings, with analysts projecting earnings of 50 cents per share on revenues of $26.53 billion.
Stock Performance and Rankings
According to stock rankings, Tesla has a growth score of 75.87% and a momentum rating of 92.45%. This indicates a strong performance by the company in recent times.
Next Steps
The recall is a significant development for Tesla, and the company will need to address the battery connection issue to ensure the safety of its vehicles. With the earnings report upcoming, investors will be watching closely to see how the company performs in the third quarter.