On Thursday, the National Highway Traffic Safety Administration (NHTSA) made the announcement that Tesla ( NASDAQ:TSLA ) would be recalling 362,758 vehicles due to potential safety issues involving the Full Self-Driving (FSD) beta software.
Tesla Stock Price Decline
The Tesla stock price dropped immediately after the announcement, but by midafternoon on Thursday, it had recovered some of those losses to trade down by only about one percent. Tesla stock fell 1% to $212.20 in Thursday market trading. On Wednesday, shares had advanced 2.4%. Since reaching a bear market low of $101.81 on January 6, Tesla stock has increased by approximately 108%.
In the recall notice issued by the NHTSA, it was stated that the experimental FSD beta software that Tesla uses “may allow the vehicle to act unsafe around intersections.” This could include driving straight through an intersection in a lane that is only designated for turning or driving through a stop-sign-controlled intersection.
It is also stated in the notice that the FSD beta system might not react to changes in the speed limits that are posted or “might not adequately account for the driver’s adjustment of the vehicle’s speed to exceed posted speed limits.”
According to the NHTSA, a collision may occur as a result of these flaws in Tesla’s FSD beta if they are not fixed. According to a statement issued by the National Highway Traffic Safety Administration (NHTSA), “Tesla initiated a recall to repair those defects as required by law and after discussions with NHTSA.”
According to the NHTSA, the recall will involve specific model...
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