Tesla Inc. TSLA is recalling more than 475,000 cars in the United States. The electric vehicle (EV) maker confirmed that it is recalling 356,309 vehicles because of a defective rear-view camera, affecting 2017-2020 Model 3 cars. Another 119,009 Model S vehicles are being recalled because of potential problems with the front trunk or boot.
Per Reuters, the total recall count is almost equivalent to half a million Tesla cars delivered last year.
For Model 3 sedans, the rear-view camera cable harness can get damaged due to excessive wear caused by the repeated opening and closing of the trunk lid. This can prevent the rear-view camera image from displaying. The loss of the review camera display may enhance the risk of a crash.
For Model S vehicles, if the primary latch is inadvertently released, the front trunk may open without warning and obstruct the driver’s visibility, increasing the threat of a collision.
Tesla states that it is not aware of any crashes, injuries or deaths related to the recalled vehicles.
The latest recall is not the first safety concern that has triggered action from the EV giant. Recently, Tesla agreed to modify its Passenger Play feature, which allows games to be played on its touchscreen while the car is in motion. The decision was made after an investigation was conducted by the National Highway Traffic Safety Administration (NHTSA). The feature will now be locked and cannot be used while driving the car. NHTSA is also investigating Tesla’s Autopilot system. The scrutiny was launched after a dozen collisions involving first-responder vehicles took place.
Zacks Rank & Other Key Picks
Tesla currently flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Some other top-ranked stocks in the auto space are Goodyear Tire GT, LCI Industries LCII and LKQ Corporation LKQ. While Goodyear Tire and LCI Industries currently flaunt a Zacks Rank of 1, LKQ Corp carries a Zacks Rank of 2 (Buy).
Goodyear has an expected earnings growth rate of 196.86% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 80 cents in the past 90 days.
Goodyear’s earnings beat the Zacks Consensus Estimate in the last four quarters. GT has a trailing four-quarter earnings surprise of 228.45%, on average. The GT stock has surged 94.1% in the past year.
LCI Industries has an expected earnings growth rate of 67.95% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 45 cents in the past 60 days.
LCI Industries’ earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing once. LCII has a trailing four-quarter earnings surprise of 10.09%, on average. LCI Industries has gained 20.8% in the past year.
LKQ Corp has an expected earnings growth rate of 51.76% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 7 cents in the past 60 days.
LKQ Corp’s earnings beat the Zacks Consensus Estimate in the last four quarters. LKQ has a trailing four-quarter earnings surprise of 34.37%, on average. LKQ has rallied 68.4% in the past year.
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