Tesla is recalling the bulk of its eagerly anticipated long-haul Semis after beginning deliveries of the all-electric, 18-wheel trucks just three months ago. TSLA shares shot up Friday.
The National Highway Traffic Safety Administration, or NHTSA, announced Friday Tesla plans to recall 35 Semi trucks for parking brake issues. The recall involves Tesla Semi trucks produced between Nov. 30, 2022, and Feb. 28, 2023.
NHTSA reports the parking brake module in the Tesla Semi could fail to engage because of an air leak. This could leave drivers unaware if the parking brake is or isn't activated, increasing the risk of a crash, NHTSA said.
"Certain Tesla Semi trucks are equipped with a supplier-provided, electronically controlled parking brake valve module that may intermittently fail to transition when the parking brake is engaged or disengaged, which could then result in the parking brakes not being set or released," the NHTSA report states.
Beginning on Feb. 14, Tesla investigated and completed a risk assessment of Tesla Semi truck parking brake issues. The EV company then decided to file a voluntary Tesla Semi recall on March 17. As of March 24, Tesla has not identified any warranty claims, crashes, injuries or deaths caused by the parking brake malfunction, NHTSA said.
Tesla Stock Rises Despite Recall
Tesla stock surged 6.2% to 207.46 Friday during trade on the stock market today. Shares leapt nearly 9% for the week.
Tesla announced in December 2022 it was beginning deliveries of its long-haul Semi trucks to PepsiCo in California. Pepsi placed its order for 100 EVs when the Semi was first announced in 2017, and is receiving the first models.
Before the recall, PepsiCo confirmed it planned to deploy 36 Tesla Semi trucks, with 15 in Modesto and 21 in Sacramento.
Tesla is currently under investigation by NHTSA over possible seat belt failures. Regulators are also probing the EV giant over steering wheel issues and driver-assistance concerns.
Tesla Thrives Amid Bank Woes
Since March 13, Tesla stock has gained around 12% even as the failures of SVB Financial, Signature Bank of New York and Credit Suisse triggered worries of broader financial instability. By Friday's market open, Tesla stock was down around 3% for the full month of March.
Before the bank failures, Tesla sold off hard from March 6 to 10, falling 12.3%. However, Tesla stock found support at its 50-day and 10-week moving averages.
Tesla stock has cleared a cup-with-handle buy point of 200.76, according to MarketSmith analysis. However, TSLA is back below the 200-day line.
Tesla stock ranks third in IBD's Auto Manufacturers industry group. TSLA has an 88 Composite Rating out of 99. Tesla stock also has an 77 Relative Strength Rating. The EPS Rating is 99.
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