Tesla recalls most Cybertrucks due to trim detaching from vehicle

WASHINGTON: Tesla is recalling nearly all Cybertrucks in the United States to fix an exterior panel that could detach while driving, the company said on Thursday, the latest in a series of call-backs for the pickup truck.

The recall covers just over 46,000 vehicles built from November 2023 through February 27 of this year, Tesla said in a filing with the National Highway Traffic Safety Administration, and is the eighth recall for the SUV since January 2024.

While Tesla does not break out deliveries of its Cybertrucks, the recalled vehicles represent a vast majority of the Cybertruck vehicles on the road, based on analyst estimates.

The recall could prove to be a setback for Tesla, whose stock has lost about half its value this year as the electric-vehicle maker grapples with rising competition, an aging lineup, and backlash against CEO Elon Musk's controversial role overseeing cuts to federal spending in the Trump administration.

Tesla is recalling the cars because of the risk of a stainless-steel exterior trim panel detaching from the vehicle, causing a potential road hazard and raising the chances of a crash, it said.

The detached panel may create a noise inside the car, or people may see the panel come loose or break off of the car altogether. Tesla said it was aware of 151 warranty claims that might be related to the recall issue, but no collisions or injuries.

Demand for the unconventional EV pickup had already weakened toward the end of last year, following several delays. The car's sales are a fraction of Tesla's overall shipments, which in 2024 came to 1.79 million.

"Recalls of the entire production for a physical item such as body panels focus attention on quality issues that Tesla has avoided for many years," said Sam Fiorani, vice president at research firm AutoForecast Solutions. "Reputations take a long time to build and can be tarnished very quickly."

Analysts have also pointed to a change in sentiment towards the EV maker from existing customers and potential new buyers, as reactions toward the brand such as protests at Tesla stores across the US and sales boycotts emerge.

Part of the backlash included motorists trading in a record number of Tesla vehicles this month, Edmunds data showed.

Tesla cars from model year 2017 or newer accounted for 1.4% of all the vehicles traded in until March 15, up from 0.4% in March last year, according to data provided to Reuters by Edmunds.

Analysts at the national car shopping website said that share could grow through the second half of the month.

In February, the Trump administration's first full month, Teslas made up 1.2% of vehicles traded in.
March's trade-ins so far would be the highest monthly share Edmunds has on record of Tesla trade-ins towards new or used purchases at dealerships, if the trend continues.

This excludes trade-ins towards new purchases of Teslas and EVs from other direct-to-consumer brands.

Shares of the EV maker were flat in afternoon trading.

In a separate development, organisers of the Vancouver International Auto Show in Canada said on Thursday Tesla was removed as an exhibitor amid the growing backlash against the brand and its owner.

"The Vancouver Auto Show's primary concern is the safety of attendees, exhibitors, and staff," said Eric Nicholl, executive director for the auto show.

Tesla did not immediately respond to a Reuters request for comment.

The safety concerns come as protesters across the United States stage demonstrations targeting Tesla's CEO Elon Musk, who is spearheading the Department of Government Efficiency's move to shrink the federal government.

Toronto on Monday stopped providing financial incentives for Tesla vehicles bought as taxis or ride shares due to escalating trade tensions between Canada and the United States.

Reports of Tesla showrooms being attacked and Tesla cars vandalised or burnt have emerged in recent weeks. Such cases are not confined to the US but have emerged in Canada, Germany, UK, Australia and New Zealand.

Three people have so far been charged in connection with arson incidents at Tesla car dealerships and charging stations in the US.

US Attorney General Pamela Bondi said on Thursday the trio each face between five and 20 years in prison if convicted.

"Let this be a warning: if you join this wave of domestic terrorism against Tesla properties, the Department of Justice will put you behind bars," Bondi said.

All three defendants are accused of using incendiary devices known as Molotov cocktails to set fire to Tesla vehicles or charging stations. Prosecutors earlier announced the arrests of Lucy Grace Nelson, 42, Adam Matthew Lansky, 41, and Daniel Clarke-Pounder, 24.