Tesla Inc. (NASDAQ:TSLA) is recalling thousands of vehicles in the United States due to a potential battery connection failure, the U.S. National Highway Traffic Safety Administration (NHTSA) said on Wednesday.
Check out the current price of TSLA stock here.
Cheaper Models Impacted
The NHTSA said Tesla is recalling 12,936 vehicles in the U.S. due to a battery connection issue in select 2025 Model 3 and 2026 Model Y vehicles, which could cause a loss of driving power and increase the risk of a crash.
This recall comes after Tesla’s debut of the new Model Y at $39,990 in early October. The Model Y, along with a lower-priced Model 3, was part of Tesla’s strategy to offer vehicles with fewer features at a lower price point.
However, the introduction of lower-priced Model 3 Standard and Model Y Standard vehicles, which came with fewer features than the traditional models, led to consumers actually paying more due to the expiration of the federal electric vehicle tax credit.
Price Action: Tesla’s stock closed down 1.08% at $442.60 in the previous session. It is currently up 16.69% year-to-date.
The company is set to report third-quarter earnings when markets close on Wednesday. Analysts are projecting earnings of 50 cents per share on revenues of $26.53 billion, according to data from Benzinga Pro.
According to Benzinga Edge Stock Rankings, Tesla has a growth score of 75.87% and a momentum rating of 92.45%. Click here to see how it compares to other leading tech companies.
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