EV maker Tesla (TSLA) has for the second time this week been forced to recall tens of thousands of vehicles over defective equipment.
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Bright Lights
The company, which reported mixed Q3 earnings overnight, said it was recalling 63,619 Cybertrucks over software that makes the front parking lights too bright. This could potentially impair oncoming drivers’ vision and increase the risk of a crash.
Thankfully for those drivers and Tesla investors, the EV maker has taken prompt action and issued an over-the-air software update to fix the issue in the Cybertrucks built between November 13, 2023 and October 11, 2025. This comes at no charge to Tesla drivers.
The Elon Musk-led automaker said it identified the problem during an internal review earlier this month after photometric tests confirmed the excessive brightness.
Tesla said it has not received any reports of crashes, injuries, or fatalities related to the issue.
Recall Trail
The recall comes only days after the EV maker was forced to take similar action with 12,963 Model 3 and Model Y vehicles.
They had to be recalled because of a battery pack component defect that could cause a loss of driver power and increase crash risk.
Tesla said it will replace the affected battery pack contactor free of charge. It has identified 36 warranty claims and 26 field reports related to this condition as of October 7, but said it was unaware of any collisions, injuries, or fatalities linked to the defect.
Earlier this month, the U.S. National Highway Traffic Safety Administration said it was opening an investigation into 2.88 million Tesla vehicles equipped with its Full Self-Driving system after more than 50 reports of traffic-safety violations and a series of crashes.
The auto safety regulator said that the FSD system, which is designed as a driver assistance feature requiring constant driver attention and intervention when needed, has “induced vehicle behavior that violated traffic safety laws.”
Why it Matters
The recall matters clearly to ensure the safety of Tesla drivers, but it also highlights a key risk for the company and its investors. That is the impact legal and regulatory issues can have on a company’s financial performance and reputation.
It is also another blow for the EV maker whose sales have struggled this year as a result of tougher competition and a loss of brand reputation given leader Elon Musk’s flirtation with right-wing politics.
Is TSLA a Good Stock to Buy Now?
On TipRanks, TSLA has a Hold consensus based on 14 Buy, 13 Hold and 10 Sell ratings. Its highest price target is $600. TSLA stock’s consensus price target is $363.50, implying a 17.19% downside.
