Tesla Has a New Problem
Good short-term news for consumers, but for Tesla? Not so much.
A few years ago, Tesla (TSLA) – Get Free Report was the sweetheart of the EV world, outselling cars by makers that had been in the market for decades before it existed.
And while Tesla’s head start on the EV market has given it quite the lead on its competitors, the brand has seen problems mount, with a slate of recalls and investigations into Autopilot, what the company calls its full-self-driving system.
Now, a new filing with the National Highway Traffic Safety Administration shows that Tesla is recalling 422 Model 3 vehicles from 2018-2019 in the U.S. due to an issue with front suspension lateral link fasteners that may loosen.
Tesla says that since January 2019 it has 25 warranty claims and two field reports that are related, but no crashes or injured drivers have been reported.
The recall is a small one compared with earlier ones, but the pileup is starting to affect the EV company.
According to its website, Tesla also made price cuts in the U.S. that range from 2% to nearly 6%, a new report from Yahoo notes.
The cuts affect the Model 3 sedan, which is $1,000 cheaper, and the Model Y crossover, which is $2,000 cheaper. Since the start of the year, the Model 3 has dropped a cumulative 11%, while the base Model Y has dropped 20%.
The pricier Model S sedan and Model X full-size SUV have also been marked down by $5,000.
This is Tesla’s fifth price cut in 2023, which has led to some concern from both investors and analysts.