Tesla Slides to 4th in WSB Rankings Amidst Recalls and Market Adjustments
AInvestFriday, Oct 4, 2024 7:01 am ET
1min read
TSLA --

In the latest WSB rankings, Tesla holds the 4th position, a slight drop from the previous day. Recently, Tesla's stock has experienced a decline for three consecutive days, falling by 8.02% over the period.

According to recent reports, Tesla has announced a significant recall campaign in the U.S., targeting over 27,000 electric vehicles due to a delay in the rearview camera's image display, which poses a safety risk. This is the largest recall for Tesla’s electric vehicles, identified in early September, where affected vehicles displayed blank images during reverse. The company plans to resolve the issue via a system update.

Additionally, Tesla had previously issued another recall concerning over 9,000 Model X vehicles due to a risk of roof trim falling off. Despite its preference for OTA updates, Tesla took the unusual step of a physical recall, highlighting the company's flexibility in addressing safety concerns.

Throughout this year, Tesla has initiated multiple recalls both in the U.S. and China, addressing various issues from software problems to potential safety risks with vehicle parts. In China alone, Tesla has issued recalls affecting over 3.3 million vehicles to address problems ranging from auxiliary driving features to manufacturing-related seatbelt alerts.

Another notable development is Tesla's cessation of sales for its cheapest Model 3 version in the U.S., primarily due to rising production costs linked to increased import tariffs on lithium iron phosphate batteries from China. Consequently, the company now offers a long-range rear-wheel-drive version as the entry-level model in the U.S. market.

Tesla's global production and sales statistics for the third quarter were recently disclosed, with a production output of 469,796 vehicles and sales of 462,890 units, closely aligning with forecasts. Approximately half of the year's sales have been attributed to the Chinese market, underscoring the vital role of China in Tesla's global strategy.

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