Tesla Recalls Almost Half a Million Vehicles: What's the Story?

Tesla issued recalls for more than 475,000 vehicles in the last week of 2021. The recalls were for safety issues associated with rear cameras and the trunks of vehicles. The National Highway Traffic Safety Administration notes that the recalls impact Model 3 and Model S vehicles with model years ranging from 2014 to 2021.

Not all the recalled vehicles are actually defective. The recall is being issued to help ensure consumers know there's a potential safety issue that may need to be addressed by a dealership or other certified warranty repair business. According to Tesla, only around 1% of the Model 3 vehicles are likely to have actual issues. The number is more for the Model S vehicles; the company estimates as much as 14% of those vehicles could display the defect.

The specific issue for Model 3 vehicles is that the rearview camera cable might be damaged by the trunk opening and closing. That can lead to issues with the rearview display. The Model S issue is slightly more urgent. In Model S vehicles with the defect, a component that's misaligned can lead to the front trunk opening without warning. That would obscure the driver's view while on the road.

Tesla is offering fixes for both issues free of charge.

Obviously, any safety recall is a poor mark for a brand, but it's unlikely that this particular issue will leave any lasting impression on Tesla's financial status. While stock prices might waver as the news hits, recalls of this nature aren't new for automakers, and Tesla's recall isn't even a large one. In 2020, Toyota recalled almost 6 million cars for a fuel pump issue that caused engines to stall unexpectedly, for example. And that's just one in a sea of many automotive recalls in recent years.