Tesla's Recall Surge: Nearly 700,000 Vehicles Affected--Here's What It Means for Investors

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Tesla's ( NASDAQ:TSLA ) recall machine is back in motion, this time targeting nearly 700,000 vehicles in the U.S. The issue? A glitch in the tire pressure monitoring system (TPMS) warning light. It doesn't stay lit between drives, leaving drivers clueless about dangerously low tire pressurea real crash risk. Impacted models include the 2024 Cybertruck, 2017-2025 Model 3, and 2020-2025 Model Y. The good news? Tesla's got it covered with a quick over-the-air software update. No trips to the service center, just a fix beamed straight to the car. Letters are going out to owners in February, but let's face itthis marks the seventh recall for the Cybertruck alone this year.

Tesla's recall stats might make some investors squirm: 1.8 million cars in Q3, over 2 million earlier in 2024, and now another chunk of the fleet. Sure, most issues are minor and get patched up through software updates, but when recalls pile up like this, it starts to look messy. For the shiny-new Cybertruck, which finally hit customers two years late, these early stumbles aren't exactly confidence boosters. Yet Tesla's tech-first DNA keeps it ahead of the game, resolving complex safety hiccups without grinding its operations to a halt.

For investors, here's the deal: Tesla's agility in fixing problems is impressive, but the recall frequency pokes at a bigger questionquality control. The stock has weathered similar storms, powered by Musk's grand vision and Tesla's dominance in EV tech. But there's only so much trust the market will extend before asking tougher questions. As Tesla juggles rapid growth and operational stability, the next movesespecially with flagship models like the Cybertruckwill be critical in keeping Wall Street bullish. Stay tuned.

This article first appeared on GuruFocus .

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