Tesla has announced a voluntary recall of more than 46,000 Cybertruck vehicles manufactured between November 2023 and February 2025. The reason is a serious defect in the side body panel (known as the cant rail), which can detach from the vehicle and become a road hazard, “increasing the risk of a crash.”
All Manufactured Cybertrucks Must Be Serviced
“The adhesive used to secure the part can fail, causing the side panel to separate from the vehicle,” states the U.S. National Highway Traffic Safety Administration (NHTSA) in its announcement. According to the NHTSA, Tesla initiated the recall after “discussions” with the safety agency. The automaker stated that it is not aware of any accidents, injuries, or deaths related to this issue.
Owners of affected vehicles can visit Tesla’s service department, where the defective panel will be replaced free of charge. This recall represents the majority of Cybertrucks currently on the road.
Ongoing Cybertruck Issues
Since the launch of this unusual pickup in November 2023, the Cybertruck has been plagued by manufacturing problems and quality issues. The NHTSA website indicates that the Cybertruck has already undergone a total of nine recall actions.
For investors, it’s concerning that Tesla’s market value has declined by approximately 40% since the beginning of the year. The situation is further complicated by CEO Elon Musk’s role as a key advisor to President Donald Trump and his leadership of the job-cutting team known as the Department of Government Efficiency.
Trading Opportunity for Investors
Our Analyst’s Commentary:
Given Tesla’s current problems, this situation could present an interesting opportunity for short-term trading strategies. Historical data suggests that automaker stocks typically decline by 3-8% during the 5-10 trading days following announcements of significant recalls.
For experienced traders, the current situation could be an appropriate moment to consider short positions. However, it’s necessary to keep in mind that Tesla stock is known for its high volatility, and every investment decision should be based on thorough analysis.
The Information reported on Thursday that Tesla plans to introduce battery technology for the Cybertruck in 2025 that would, according to a senior company manager, “significantly reduce battery manufacturing costs,” which could positively affect future stock performance.
