In response to a potential safety risk, Tesla announced a massive recall of 1.85 million vehicles in the United States due to a software issue that could fail to detect an unlatched hood. The National Highway Traffic Safety Administration (NHTSA) highlighted the danger posed by an unlatched hood fully opening and obstructing the driver's view, increasing the risk of a potential accident.
To address this issue, Tesla began rolling out an over-the-air software update in mid-June aimed at rectifying the problem. The updated software is designed to detect an open hood and alert drivers, mitigating the safety hazard. The recall impacts certain 2021-2024 Model 3, Model S, Model X, and 2020-2024 Model Y vehicles that were equipped with a problematic hood latch produced by Magna Closures Co Ltd in China.
The investigation into customer complaints in China led Tesla to discover instances of unprompted hood openings in specific Model 3 and Model Y vehicles. This prompted the automaker to conduct latch hardware recovery and in-service vehicle inspections. While incidents were fewer in Europe and North America, Tesla initiated engineering studies in those regions last month to inspect hood latch assemblies, ultimately leading to the decision to issue a recall earlier this month.
Although there have been three reports of the issue in the United States, thus far, there have been no occurrences of crashes or injuries related to the recall. This recall marks the largest for Tesla since December when it recalled 2.03 million U.S. vehicles to enhance safety features in its Autopilot system. However, following reports of 20 crashes involving vehicles with the new Autopilot update, NHTSA has opened an investigation citing "several concerns" about the recall.
Recently, Tesla reported its lowest quarterly profit margin in over five years, underscoring the challenges faced by the electric vehicle manufacturer in boosting auto sales amidst a slowdown in demand.