
Shares of Tesla Inc (NASDAQ: TSLA) have been enjoying some of their best weeks of the year over the past month, but recent headlines make it seem like that run could be over. A Cybertruck recall has been issued due to concerns that wheel studs on certain Cybertruck models could crack and potentially separate from the wheel hub, posing a risk of wheel detachment while driving.
On the surface, that sounds catastrophic. Wheels falling off moving vehicles is exactly the kind of headline that grabs investor attention, particularly for a company already under intense scrutiny around safety, quality control, and regulation. As MarketBeat flagged a few months ago, Tesla has been increasingly scrutinized by regulators this year.