According to a report published by Reuters, Tesla, Inc. (NASDAQ: TSLA) has recalled 578,607 vehicles in the U.S. to fix an issue with the pedestrian warning sounds.
When the vehicle is moving, its Boombox feature plays loud music or other sounds through the Pedestrian Warning System (PWS) speaker because of which pedestrians might not be able to hear a warning sound of the approaching vehicle.
The recall includes 2017-2022 Model 3 vehicles and some 2020-2022 Model S, Model X and Model Y vehicles.
The National Highway Traffic Safety Administration (NHTSA) said that the vehicles are in violation of a safety standard related to minimum sound requirements for EVs, which are hard to hear, compared to vehicles running on gasoline, at lower speeds.
The Texas-based company will carry out an over-the-air software update to disable the Boombox function when the vehicle is in Reverse, Neutral and Drive modes. It said that there were no reports of any injuries or crashes due to the issue.
Tesla is being increasingly scrutinized by the NHTSA, which has led to the company announcing 10 recalls in the U.S. over the last four months.
Sued by California
Meanwhile, the EV maker has been sued by the California Agency for alleged racial discrimination after receiving hundreds of complaints related to racial discrimination and harassment at its Fremont factory, The Wall Street Journal reported.
The agency’s Director Kevin Kish said, “After receiving hundreds of complaints from workers, DFEH found evidence that Tesla’s Fremont factory is a racially segregated workplace where Black workers are subjected to racial slurs and discriminated against in job assignments, discipline, pay, and promotion, creating a hostile work environment.”
A company representative said, “Tesla strongly opposes all forms of discrimination and harassment and has a dedicated Employee Relations team that responds to and investigates all complaints.”
About Tesla
Tesla manufactures and sells fully electric vehicles, solar energy generation systems and energy storage products. It also operates a network of vehicle service centers and Supercharger stations.
TSLA stock closed almost 3% down on Thursday. It lost another 0.5% in the extended trading session to end the day at $900.20.
Analysts’ Opinion
Recently, Morgan Stanley (NYSE: MS) analyst Adam Jonas reiterated a Buy rating on the stock with a $1,300 price target.
Overall, the stock has a Moderate Buy consensus rating based on 17 Buys, 7 Holds and 6 Sells. The average Tesla price target of $1,105.58 implies 22.2% upside potential. Shares have gained 32% over the past six months.
Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into Tesla’s performance.
According to the tool, compared to the previous year, Tesla’s website traffic registered a 36.6% decline in global visits year-to-date.
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