Trouble mounts for Tesla as EV giant gets set to recall 1.25 lakh cars in the US
- A potential fault with the seat-belt reminder system has put the spotlight on almost every EV model Tesla offers in the US.
As if slowing sales growth and increasing competition in global markets were not enough, Tesla is now hit by one of the worst nightmares for any automotive company - the need to recall faulty models. The electric vehicle (EV) giant is reportedly planning to issue recall orders for around 1.25 lakh units in the US market owing to a possible fault in the seat-belt warning systems.
News agency Reuters reports US National Highway Traffic Safety Administration has confirmed Tesla will have to recall these EVs because the seat-belt warning light and audio chime may not be working as intended when a person inside is unbelted. The NHTSA is a federal agency that is tasked with safety of people across US' road network.
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As per NHTSA, the recall order from Tesla will affect EV models like Model S manufactured between 2012 and 2024, Model X between 2015 and 2024, Model 3 between 2017 and 2023 and Model Y between 2020 and 2023. That, essentially, almost entirely covers the product portfolio of the Elon Musk-led company.
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The fix for the potential fault, however, may not be elaborate as Tesla is expected to release an Over-the-Air (OTA) software update as a solution. But what this could potentially do is impact Tesla's image at a time when the rivalry in the EV space is hotting up by several degrees.
Electric battle among electric cars
Sales of electric cars have not been rising as quickly as was previously expected. The last few months of 2023 and the first quater of 2024 was not too peachy for EV manufacturers across the world. Experts say that while enthusiastic first-time EV buyers have made their purchases, the mass-market consumers are far more price conscious and would be more tepid with their decisions.
In the US, around 10.60 lakh EVs were sold in all of 2023, up by 60 per cent from a year earlier. But while the growth is predicted to persist, the trajectory of the sales graph rise is likely to taper down in 2024.
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