Skip to content

Tesla recalls over 1 million cars due to window software; What it means for TSLA stock?

Tesla recalls over 1 million cars due to window software; What it means for TSLA stock

The National Highway Traffic Safety Administration (NHTSA) received a letter from Tesla (NASDAQ: TSLA) on September 21 that informed them that the electric vehicle (EV) manufacturer would perform an over-the-air update for one of their system. 

The recall for a faulty window reversal system that did not react accordingly when detecting an obstruction seems to be the reason for a 1.1 million vehicle recall. The recall will cover some 2017-2022 Model 3, 2020-2021 Model Y, and 2021-2022 Model S and Model X vehicles, according to a Reuters report published on September 22.

Furthermore, Tesla claimed that it was unaware of any warranty claims, crashes, or injuries due to this faulty system. 

Market participants that are more bearish on Tesla could use this to justify shorting the stock, as recently Micheal Burry claimed that he is no longer short TSLA, but he should have been.    

TSLA chart and analysis

In the last month, TSLA has been trading in the $265.74 to $313.80 range, staying above all moving averages. In addition, technical analysis indicates a support zone from $282.90 to $285.49 and a resistance zone from $301.38 to $309.32. 

TSLA 20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.

TipRanks analysts rate the shares a ‘moderate buy,’ with the average price in the next 12 months reaching $311.97, 3.71% higher than the current trading price of $300.80.

Wall Street analysts’ price targets for TSLA. Source: TipRanks  

In essence, Tesla’s vehicles failed to comply with the federal motor vehicle safety standards on power windows, possibly utilizing excessive force by pinching a driver or passenger before retracting the window.

Allegedly, vehicles in the production and pre-delivery phase have received the necessary software upgrades, complying with the requirements.  

Buy stocks now with Interactive Brokers – the most advanced investment platform


Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

Best for:

Intermediate Traders and Investors

2.8 Million Active Accounts
Finbold is compensated if you access certain of the products or services offered by eToro USA LLC and/or eToro USA Securities Inc. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success.

Read Next:

Weekly Finance Digest

Related posts

AD