Over 2 Million Teslas Recalled – Why and What To Do if You’re Affected

Tesla's autopilot feature might be a problem
Updated June 6, 2024
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In a major development, Tesla, the electric vehicle pioneer led by Elon Musk, has announced a recall affecting over two million vehicles in the United States. U.S. National Highway Traffic Safety Administration (NHTSA) findings from a two-year investigation revealed defects in Tesla's driver assistance system, Autopilot. This amounts to nearly all Tesla vehicles sold in the U.S., and the recall will serve to update software and fix defective systems posing safety risks.

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The Autopilot recall

The recall spans almost every Tesla vehicle sold in the U.S. since the launch of the Autopilot feature in 2015. The NHTSA investigation, initiated due to crashes occurring while Autopilot was in use, identified shortcomings in the system's controls, raising concerns about preventing driver misuse. Despite Tesla's disagreement with the agency's analysis, the company has agreed to address the concerns through a comprehensive software update delivered "over the air."

Tesla's commitment to resolving the issue without requiring physical visits to dealerships or garages underscores the unique capability of delivering updates remotely. This approach demonstrates the agility of Tesla’s programming but has been met with some concerns by consumers about its effectiveness.

What to do if you own a Tesla

Tesla sent the software update to owners of certain affected vehicles to fix Autosteer functionalities on Tuesday without bringing the car into Tesla servicing centers. The rest will receive the update at a later date. The update limits where Autosteer can be used, depending on surrounding conditions.

If you're considering trading in your Tesla all altogether ahead of safety concerns, viable and well-tested options have come onto the market since Tesla's debut. Hyundai's IONIQ 5 is comparable to Tesla's bestselling Model Y, the Kia EV6, and the Ford Mustang Mach-E. The Polestar 2 RWD is an alternative to Tesla's Model 3 and the BMW i4.

Autopilot: A misunderstood co-pilot

Autopilot, designed to assist with steering, acceleration, and braking, has faced criticism and scrutiny. The NHTSA findings revealed that the system's controls might not be sufficiently prominent to deter driver misuse. Despite the system's name, Autopilot mandates continuous driver input and attention. The investigation's outcomes prompt reflection on the challenges of balancing technological advancements with user responsibility in semi-autonomous driving features and highlight overall implications for the electric vehicle industry.

While the recall affects Tesla vehicles in the U.S., the U.K. Driver and Vehicle Standards Agency clarified that Teslas sold in the U.K. lack certain features in their U.S. counterparts. Notably, Teslas in the U.K. are not equipped for self-driving and lack approval for such functionality. The global automotive market has been receptive to Tesla’s products, but the recent recall threatens to affect markets outside the United States.

The recall follows recent comments from a former Tesla employee, Lukasz Krupski, who expressed concerns about the safety of Tesla's technology. Winning the Blueprint Prize for whistleblowers, Krupski emphasized his belief that Tesla's hardware and software were not ready, considering Tesla drivers as "experiments on public roads".

Safety metrics and public perception

In response to criticisms, Tesla defended the safety of Autopilot, highlighting safety metrics that purportedly show fewer crashes when Autopilot is engaged. This discourse brings attention to managing public perception in the evolving landscape of autonomous driving technology. Critics argue that Tesla may have inadvertently misled customers about the capabilities of its software, contributing to perceived risks and concerns.

This recall marks the second affecting Tesla vehicles in 2023, raising questions about the impact on the company's momentum. Analysts suggest that, while the recall of two million cars could influence Tesla's share prices temporarily, the company's financial capacity to invest in fixes to the problems mitigates the potential long-term financial effects.

The future of autonomous driving

Despite the recall, Tesla continues to champion autonomous driving technology, with Elon Musk highlighting its pivotal role in its future growth. Goldman Sachs analysts project significant financial growth—potentially exceeding $50 billion annually in revenue—by 2030 from Tesla's most advanced Autopilot offering, full self-driving. The discourse around the recall amplifies the ongoing debate on the pace of development, regulatory oversight, and public acceptance of self-driving capabilities.

Bottom line

Tesla's recall of over two million vehicles due to Autopilot defects is a critical point in the trajectory of autonomous driving technology. As the industry navigates evolving regulatory landscapes, public perceptions, and technological capabilities, the recall serves as a reminder of the delicate balance required for responsible innovation. The road to safer automation necessitates continuous collaboration between industry stakeholders, regulators, and the public to ensure the seamless integration of transformative technologies into our daily lives. This will make for safer roads and, hopefully, savings on your car insurance as well. 

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Author Details

Georgina Tzanetos Georgina Tzanetos is a former financial advisor who has been active in financial media for the past six years. She holds a master's in political economy from NYU, where she studied distressed labor markets.