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The Street
The Street
Rob Lenihan

Tesla Recalls 40,000 Vehicles for Possible Huge Problem

These have been some tough times for Tesla (TSLA).

The electric vehicle (EV) maker has seen it shares fall largely due to concerns about CEO Elon Musk's $44 billion purchase of Twitter.

Last week, Wedbush analyst Dan Ives removed the company from his "best ideas" list, citing what he called the "albatross" of Musk's Twitter takeover.

Tesla on Nov. 13 said it would assist Chinese police in investigating a crash involving one of its Model Y cars after local media reports said two people had died and three were injured when the driver lost control of the vehicle, Reuters reported.

Musk is also contending with the possibility of a congressional investigation.

Tesla

Tesla Has a Major Recall

And then there are the recalls. 

The latest involves more than 40,000 2017-2021 Model S and Model X vehicles that could experience a loss of power steering, according to a recently released filing with the National Highway Traffic Safety Administration.

In October, Tesla rolled out a firmware release, which included updated calibration values for the electronic power assist steering system.

In rare cases on certain vehicles, the notice said, the updated calibration values may result in reduced or lost power steering assist due to external forces such as potholes or speed bumps.

"Reduced or lost power steering assist does not affect steering control, but could require greater steering effort from the driver, particularly at lower speeds," the filing said, increasing the risk of a crash.

Tesla said it is not aware of any deaths or injuries related to this condition.

As of Nov. 1, Tesla said, 97% of the recalled vehicles have installed a new update that addresses the issue, and no further action is necessary from those owners. 

Tesla Had Another Recall in October

The company said it had identified 314 vehicles with the problem.

In October, Tesla issued a recall for Model 3 vehicles due to a problem with the seat belts. 

NHTSA said the recall affected 24,064 Model 3 vehicles built since 2017.

In September, the company recalled more than a million Model 3 cars  because the automatic windows may exert excessive force while closing.

Tesla said it had not been made aware of any injuries but has said it will perform a software update on the Windows system to rectify the problem. 

"The window automatic reversal system may not react correctly after detecting an obstruction," NHTSA said in a filing dated Sept. 19. 

To rectify the problem, the agency said Tesla would "perform an over-the-air software update of the automatic window reversal system, free of charge."

Musk complained about the term "recall", tweeting that is "outdated & inaccurate."

"This is a tiny over-the-air software update. To the best of our knowledge, there have been no injuries," the world's richest man said.

In early February the automaker recalled 817,000 vehicles because the seat belt warning might not work properly in some cases. Here, too, the problem was solved with an over-the-air software update.

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