Tesla initiates sixth Cybertruck recall in a year

Tesla initiates sixth Cybertruck recall in a year


New Tesla Cybertruck vehicles parked at a logistics drop zone in Seattle on Aug. 22, 2024.

M. Scott Brauer | Bloomberg | Getty Images

Tesla is recalling 2,431 Cybertrucks to replace defective drive inverters, according to notices made public by the National Highway Traffic Safety Administration on Wednesday.

It’s the sixth recall of the Cybertruck since the angular steel pickup went on sale about a year ago. The Cybertruck sells in the U.S. for a base price of around $80,000.

Tesla addressed the previous Cybertruck recall with an over-the-air software update to fix an issue that caused images from the truck’s backup cameras to not display correctly after the driver shifted into reverse. The latest Cybertruck recall requires the replacement of a part called a drive inverter, which provides power to the wheels of the vehicle.

“If the inverter stops producing torque, the driver loses the ability to apply torque to the vehicle using the accelerator pedal resulting in a loss of propulsion, which may increase the risk of a collision,” Tesla wrote in a statement.

The Cybertruck became the third-best-selling fully electric vehicle in the U.S. during the third quarter of 2024, behind Telsa’s Model Y and Model 3 EVs.

Tesla is currently facing four known NHTSA investigations looking into possible safety defects in its vehicles. The most serious investigation concerns whether the company’s premium driver assistance system, marketed as “Full Self-Driving Supervised,” is safe to use in reduced visibility conditions such as glaring sunlight and fog.

Tesla CEO Elon Musk has clashed with NHTSA and other federal regulators for years. That tension is now in the spotlight following the election victory last week of President-elect Donald Trump.

As the principal backer of Trump’s campaign, Musk has been granted a role in a new office Trump called the Department of Government Efficiency. While the office hasn’t yet been formed or funded by Congress, Musk has said he intends to use his influence to cut federal spending and regulations, and to change federal motor vehicle safety standards that are implemented and enforced, in part, by NHTSA.

Tesla didn’t immediately respond to a request for comment.

WATCH: Elon Musk’s big bet on Trump is a home run for Tesla

Elon Musk's big bet on Trump is a home run for Tesla, says Wedbush's Dan Ives



Source

Sandisk stock soars 14% after blowout earnings report shows overwhelming AI demand
Technology

Sandisk stock soars 14% after blowout earnings report shows overwhelming AI demand

Sandisk‘s stock popped 14% after the company crushed Wall Street’s fiscal second-quarter estimates, as the artificial intelligence boom sent demand for its chips skyrocketing. The flash storage memory company reported earnings of $6.20 per share, excluding items, blowing past the $3.62 per share expected by analysts surveyed by FactSet. Revenue totaled $3.03 billion, topping a […]

Read More
Trump picks Warsh, Apple earnings, the software bear market and more in Morning Squawk
Technology

Trump picks Warsh, Apple earnings, the software bear market and more in Morning Squawk

This is CNBC’s Morning Squawk newsletter. Subscribe here to receive future editions in your inbox. Happy Friday. President Donald Trump has made his decision on who he’ll nominate to be the Federal Reserve’s next chair, and it turns out that it was one of the “Kevins” after all. Stock futures are lower this morning. The S&P 500 […]

Read More
Microsoft tumbled 10% in a day and isn’t recovering premarket. Here’s why
Technology

Microsoft tumbled 10% in a day and isn’t recovering premarket. Here’s why

Key Points Microsoft’s stock saw its biggest daily decline since 2020 on Thursday, falling 10%. The stock is up 0.5% premarket on Friday. The share slide wiped $357 billion off the software giant’s market cap. Analysts attributed the move to company’s cloud computing business growing slightly slower than expected. Microsoft’s stock isn’t recovering in Friday’s […]

Read More