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What caused Tesla Stock to fall?

Tesla Inc. (TSLA) stock fell Tuesday as it recalled nearly 54,000 cars due to problems with its self-driving software. Shares dipped 0.6% to 931.25 on the stock market. Tesla stock spiked nearly 11% on Monday.The recall includes53,822 autos from the following years:

  • 2016-2022 Model S and Model X lines
  • 2017-2022 Model 3 line
  • 2020-2022 Model Y line

Tesla also issued a recall in November due to another software error that could cause the activation of the emergency brake.

Chart for Tesla Inc.

The National Highway Traffic Safety Administration (NHTSA) said late Monday Tesla’s Full Self-Driving (Beta) software allows some models to conduct “rolling stops” allowing “the vehicle to travel through an all-way stop intersection without first coming to a stop,” increasing the risk of a crash.

The NHTSA report said Tesla will perform an over-the-air (OTA) software update to disable the “rolling stop” function. The function, part of Tesla’s “Assertive” mode, was released in October and was only supposed to engage if there were no vehicles, pedestrians, or cyclists in the vicinity. But failure to stop at stop signs is a violation of state laws.

 

Written by Maryam Nawaz

MPhil International Relations (Specialization in International Politics and Economy)

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