Tesla recalls more than 1.8 million vehicles over bonnet defect

Electric vehicle maker Tesla is recalling more than 1.8 million vehicles in the US due to a bonnet defect that could increase the risk of a crash.

The models being recalled include certain 2021-2024 Model 3, Model S, Model X, and 2020-2024 Model Y vehicles, the Texas-based company said on Tuesday.

Tesla's stock dropped 2.10 per cent to trade at $227.23 a share at 7.20pm UAE time (11.20am New York time), following the recall news. Billionaire businessman Elon Musk-owned company's shares have dropped more than 8.5 per cent since the start of the year.

The vehicle software might fail to detect an unlatched bonnet, potentially increasing safety risks, National Highway Traffic Safety Administration, which is part of the US department of transportation, said in a regulatory filing.

“The hood latch assembly may fail to detect an unlatched hood condition after the hood has been opened … an unlatched hood can fully open, obstructing the driver's view and increasing the risk of a crash,” NHTSA said.

It added that Tesla has released a free over-the-air software update and owner notification letters are expected to be mailed on September 22.

Tesla said it started probing users’ complaints regarding unexpected bonnet opening incidents in Model 3 and Model Y vehicles in China in March.

The company started engineering studies to inspect bonnet latch assemblies in other regions, including the US and Europe, in June and decided to issue a recall this month.

Tesla reported three instances of the issue in the US but confirmed there have been no crashes or injuries related to the recall.

The recalled vehicles were equipped with a bonnet latch produced in China by Magna Closures, according to a Reuters report.

Last week, Tesla predicted sluggish vehicle volume growth in 2024 after reporting a 45 per cent annual drop in June quarter net profit to more than $1.4 billion. Earnings a share stood at 42 cents compared to the expected 62 cents as the company posted its worst quarterly profit margin in over five years.

Tesla's continuing recall challenges

The latest recall is Tesla’s biggest since December last year when it recalled more than two million vehicles, nearly every vehicle it has sold in the US, because of safety concerns over its Autopilot feature. NHTSA started its investigation into Tesla in 2011 in which it proved 11 accidents involving the Autosteer feature.

In June, Tesla announced its fourth recall, affecting 11,688 Cybertrucks since the model was launched last year.

In January, Tesla recalled over 1.6 million vehicles in China to fix automatic driver-assistance steering and door latch controls.

In 2022, the company had to recall almost 128,000 cars in China because of a defect in their rear motor inverters.

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