Faced with another serious incident, U.S. regulators have been investigating Tesla on multiple fronts. They are investigating accusations that Tesla has sold approximately 170,000 Model Y vehicles with defective electric-powered door handles. Neglect of this issue has led to rampant safety indignities. There have been multiple news stories of children becoming accidentally stuck in vehicles because their door handles failed. The investigation reveals a significant new issue for Tesla as the company now prepares for a likely decline in full-year car deliveries for a second consecutive year.
According to complaints filed with the National Highway Traffic Safety Administration, the electric-powered door handles in certain Model Y vehicles have just randomly stopped working. This malfunction has left occupants unable to exit the vehicle safely, prompting some owners to resort to breaking windows to free themselves. The National Highway Traffic Safety Administration (NHTSA) emphasized the risks associated with such entrapment, stating, “Entrapment in a vehicle is particularly concerning in emergency situations, such as when children are entrapped in a hot vehicle.”
Given all of these changes at once, Tesla is choosing to lead through a stormy time. The company has shifted its focus towards innovative projects, such as robotaxis and humanoid robots, under the leadership of CEO Elon Musk. Tesla is still operating with a hugely recognition-dependent yacht, as it operates in ever-challenging times seas.
Recent data from Cox Automotive reveals a radically different picture. Tesla’s U.S. market share has fallen off a cliff. It has since dropped to its lowest point in almost eight years, Reuters reports. This decline in market share coincides with a consumer backlash against Musk’s connections to the Trump administration, which has reportedly impacted Tesla’s sales in recent months.
These faulty door handles have created a crisis of confidence for Tesla. The firm needs to get ahead of these outside stresses all while maintaining the momentum of production. Annually, reports of children dying from being left in hot vehicles have reignited concerns about automotive safety and manufacturers’ irresponsibility.
The NHTSA’s investigation is a shining example of these efforts, as well as the need for vehicle reliability and consumer safety. “In these instances, an occupant who remains inside a vehicle in this condition may be unable to be rapidly retrieved by persons outside of the vehicle,” the agency added.
Tesla is facing a tidal wave of growing regulatory and market headwinds. The safety violations and the company’s efforts to repair consumer trust will be important to monitor, particularly as sales start to slip.