Finance

Tesla's Biggest Cybertruck Recall Sparks Safety Concerns Amid Sales Struggles

2025-03-20

Author: Ken Lee

Tesla is making headlines with its largest Cybertruck recall to date, impacting over 46,000 units across the United States. This unprecedented move comes as concerns arise regarding a significant safety issue: a component of the electric vehicle's exterior trim—the cant rail—may detach while driving, posing a serious road hazard and increasing the risk of accidents.

The recall, which affects almost the entirety of the Cybertruck production run that began in November 2023, marks the eighth recall for the model. Tesla did not provide a comment on this development, but the situation is particularly concerning as the company faces declining sales amid broader criticism aimed at both the brand and CEO Elon Musk.

In a separate development, US Attorney General Pam Bondi announced that three individuals would be charged with domestic terrorism for setting fire to Tesla vehicles and charging stations, highlighting a turbulent period for the company. While Tesla does not disclose specific Cybertruck sales figures, industry analyst firm Cox Automotive estimated that approximately 39,000 units were sold in the US last year.

This isn't Tesla's first run-in with safety recalls for the Cybertruck. Previous issues included malfunctioning windshield wipers and problems with the accelerator pedal. The cant rail issue was initially flagged by Tesla to the National Highway Traffic Safety Administration (NHTSA) in January. Despite receiving around 150 complaints related to delamination of this trim component, the company reports no known accidents linked to the problem.

As Tesla grapples with these challenges, its stock has plummeted nearly 40% since the start of the year. Analyst Dan Ives described this scenario as a "tornado crisis moment" for the brand, attributing some of the decline to the adverse effects of Musk's political involvement. This decline in stock value comes amid increased competition in the electric vehicle market and a dated product lineup.

Originally positioned to boost Tesla's presence in the lucrative US pickup truck market, the Cybertruck debuted in late 2023 with a starting price exceeding $72,000. However, the recent recall raises questions about brand perception and consumer confidence. With a warranty covering the repair of the affected components at no cost to owners, Tesla aims to reassure customers before the full implications of this recall unfold.

As the company navigates these hurdles, it remains to be seen how the upcoming months will shape the future of the Cybertruck and Tesla as a whole. Will the recall further dent consumer trust, or can Tesla rebound and regain its foothold in the competitive automotive sector? Stay tuned for updates!