Elon Musk, CEO of Tesla, is preparing for a significant quarterly earnings report that is expected to be the most important since he took charge of the company in 2008 [3de53f9c]. Tesla has recently issued a recall for 3,878 Cybertrucks due to a faulty accelerator pedal pad, adding to a series of recalls that have affected approximately 2.4 million vehicles in the first quarter of this year. This latest recall has raised concerns among investors, as Tesla's stock has already fallen by over 40% this year. The upcoming earnings report will shed light on the financial impact of these recalls and provide insight into the company's future prospects [3de53f9c].
The recall of nearly 4,000 Cybertrucks was announced by the U.S. National Highway Traffic Safety Administration (NHTSA) due to an issue with the accelerator pedal. The recall affects all Model Year 2024 vehicles produced between November 13, 2023, and April 4, 2025. The NHTSA reported that the accelerator pedal's pad covering could detach under high force and become stuck in the interior trim. The root cause of this issue is attributed to the use of an unapproved lubricant during the attachment of the pad to the accelerator pedal. The recall was prompted by a TikTok video posted by a Cybertruck owner in California, which went viral and brought attention to the problem. Tesla was informed of the pedal issue on March 31 through the first report, and a second report regarding a separate incident was submitted four days later on April 3 [088f8927] [3de53f9c].
Tesla's recent recalls have affected a significant number of vehicles, with three recalls impacting around 2.4 million vehicles in the first quarter of this year alone. These recalls have raised concerns among investors, as Tesla's stock has already experienced a decline of over 40% this year. The upcoming quarterly earnings report will provide crucial information about the financial impact of these recalls and the company's overall performance. Investors will be closely watching the report to assess Tesla's ability to address these issues and its prospects for the future [3de53f9c].
The US National Highway Traffic Safety Administration (NHTSA) is investigating Tesla's Autopilot system to determine if the carmaker adequately addressed issues with the driver-assistance system. The investigation is focused on the adequacy of Tesla's recall in December, which aimed to prevent drivers from misusing Autopilot. The NHTSA is concerned that Tesla's remedy may not have been sufficient, especially in light of crashes that have occurred since the software update. Over 2 million Tesla vehicles are subject to the probe. Tesla CEO Elon Musk has faced criticism for his optimism about the company's automated-driving systems, including his plan to unveil a driverless robotaxi in August. Tesla filed the Autopilot recall in December to address concerns raised by the NHTSA in a defect investigation. The agency will also investigate why Autopilot updates made after the recall were not included in the initial recall. This is not the first time Tesla has faced scrutiny from the NHTSA over software updates to Autopilot without filing a recall [a0715b15].
The National Highway Traffic Safety Administration (NHTSA) has published a report on the safety of Tesla's Autopilot and Full Self-Driving (FSD) technologies, revealing that the software did not keep drivers engaged and resulted in 29 deaths and 49 injuries in 956 crashes. The NHTSA found that drivers relied too heavily on the technology and failed to take evasive action in time. The agency also criticized the naming of Tesla's driver-assist software, stating that 'Autopilot' and 'Full Self Driving' mislead drivers [c9f0d459].
Tesla has recently faced job cuts, with over 10% of its workforce being laid off. 601 workers at Tesla facilities in California are the latest to be affected. This comes as Tesla's stock has fallen by over 40% this year, raising concerns among investors. Additionally, the U.S. National Highway Traffic Safety Administration (NHTSA) has opened a fourth investigation into the Fisker Ocean SUV to probe multiple claims of 'inadvertent Automatic Emergency Braking' [76c1cf49].
In other news, Motional, an autonomous vehicle startup, has laid off over 550 employees, which accounts for about 40% of its workforce. Zeekr Intelligent Technology Holding, a Chinese EV brand, raised $441 million in an IPO on the New York Stock Exchange. Denis Sverdlov's roborace.com domain is up for sale. The Bot Company, a VC-backed robotics startup focused on household chores, raised $150 million. Li-Cycle, a lithium-ion battery recycling startup, raised $36 million in a Series B funding round. Mapfit, a startup that developed software development kits for mapping and navigation, raised €3 million. Uber agreed to buy Foodpanda Taiwan for $300 million in cash [76c1cf49].
The U.S. National Highway Traffic Safety Administration (NHTSA) is seeking records from Tesla as part of its investigation into power steering loss reports in Model 3 and Model Y vehicles. The investigation covers approximately 334,000 vehicles from the 2023 model year and was initiated after the agency received 115 reports of loss of steering control. Tesla has had nine recalls in the United States for steering and suspension issues since 2018 [4619152d].
Waymo, the self-driving vehicle company, is recalling over 600 of its self-driving vehicles for software and map updates after one of them struck a telephone pole in Arizona. The recall includes the entire fleet of 672 vehicles. The incident occurred when a driverless Waymo vehicle hit a wooden utility pole in Phoenix, Arizona while attempting a low-speed pullover maneuver in an alleyway. No passengers, other road users, or injuries were involved in the collision. Waymo has implemented a software update to enhance the automated driving system's response to poles or pole-like permanent objects. Additionally, a map update has been provided to include a hard road edge between the pole or pole-like object and the drivable surface [a26980d1].
A Tesla in self-driving mode crashed into a parked police car in Fullerton, California. The incident occurred when an officer was on traffic control duty blocking a road for an investigation into a suspected DUI crash that left a motorcyclist dead. The officer saw the Tesla driving towards him and not slowing down, but he was able to jump out of the way before the collision. The Tesla was in self-drive mode, and the driver admitted to being on a cellphone at the time of the crash. It is unclear if the driver will be cited. The motorist involved in the earlier fatal collision was arrested on suspicion of DUI and driving without a license. The motorcyclist killed in the crash was an adult male. The incident is under investigation by authorities [640a4879].
Toyota and SoftBank have formed a partnership to create a new business called Monet, which will focus on driverless car technology for services such as mobile convenience stores and delivery vehicles. SoftBank will hold a majority stake in the venture, with Toyota holding the rest. This collaboration follows the trend of technology companies and automakers joining forces to develop autonomous vehicles. Meanwhile, Facebook is facing an investigation by the Irish Data Protection Commission regarding a hack that affected millions of accounts. The investigation is centered around whether Facebook complied with European data protection laws. In the financial sector, the yield on 10-year US Treasuries has reached a seven-year high due to positive economic data and strong hiring numbers. CNNMoney has rebranded as CNN Business, with a focus on the impact of technology on the global economy. US stock futures have declined, and European markets have followed suit. Earnings reports from Costco and Constellation Brands are forthcoming, while Danske Bank is under scrutiny for a money laundering scandal. Costco's earnings report and the US jobs report are expected later this week [a28a5be4].