Tesla has announced a recall of 46,000 Cybertrucks in the United States to address an issue with the vehicle's exterior panel. The problem involves a part known as a cant rail, a stainless-steel trim panel, which may delaminate and detach while driving. This defect poses a potential road hazard and increases the risk of a crash, according to a notice from the US National Highway Traffic Safety Administration.
Tesla has confirmed that it will replace the affected rail assembly free of charge. The recall comes at a challenging time for the company as its shares have plummeted by a third over the past month. Investor concerns have heightened due to CEO Elon Musk's public involvement with the Trump administration and his leadership role in Doge, which some believe is damaging both his reputation and Tesla's business.
Dan Ives, managing director at Wedbush and a self-described Tesla "core bull," has voiced his concerns about the company's current trajectory. He believes that Tesla is experiencing what he terms as a "brand tornado crisis moment." According to Ives, Musk's high-profile associations, coupled with recent job cuts and spending reductions, are contributing factors to this crisis.
“Investors need to see Musk take a step back and balance his Doge and Tesla CEO roles,” Dan Ives expressed.
Additionally, a US judge ruled that Musk and Doge likely violated the US Constitution by shutting down the US Agency for International Development. This legal entanglement adds another layer of complexity to Tesla's already tumultuous situation.
Ives suggests that for Tesla to regain stability, Musk needs to formally balance his roles between Doge and being the CEO of Tesla. He also emphasizes the importance of Musk setting out a clear roadmap for the release of new, lower-cost vehicles and the rollout of fully self-driving vehicles in Austin, Texas, slated for June.
“The brand damage started off as limited in our view based on our initial survey work … but now has spread globally over the last few weeks into what we would characterise as a brand tornado crisis moment for Musk and Tesla,” remarked Dan Ives.
In response to these ongoing challenges, Tesla protesters are organizing a "day of action" on March 29, with approximately 500 demonstrations expected at Tesla showrooms worldwide. This indicates growing dissatisfaction among stakeholders and consumers alike.