Tesla faces new safety setback with 12,863-vehicle recall over power failure

Source Cryptopolitan

Tesla is recalling 12,863 electric vehicles across the U.S. due to a battery defect that can cause the cars to suddenly lose power while driving.

The issue, which increases the risk of a crash, affects Model Y SUVs and Model 3 sedans built between March and August 2025, according to documents Tesla filed with the National Highway Traffic Safety Administration (NHTSA).

The fault comes from a weak connection inside the battery pack. Tesla said this defect could cut off power to the wheels without warning. The company has already logged 36 warranty claims and 26 field reports connected to the problem.

However, no crashes, injuries, or deaths have been reported so far. Owners will need to bring in their cars to get the part replaced.

Battery fault adds to growing list of safety problems

This is not the only problem on Tesla’s plate. NHTSA confirmed last month that it is also investigating power issues in the electrically controlled doors on the 2021 Model Y. That probe was triggered by a Bloomberg investigation focused on the vehicle’s door handles. Tesla’s Cybertruck, which only launched recently, has already been recalled more than six times for different problems.

This latest battery recall piles onto Tesla’s long-running quality concerns. As more owners report technical failures, the spotlight on Tesla’s safety record keeps getting brighter. The company hasn’t commented beyond what it submitted to NHTSA. No timeline was given for how quickly repairs will be made, or whether loaner vehicles will be offered during service.

Meanwhile, Tesla is trying to shift attention away from its cars and toward artificial intelligence. That’s not exactly working. The company quietly launched cheaper versions of some of its vehicles, but the response was lukewarm. Sales have been under pressure since the federal EV tax credit expired last month, and Chinese competitors are eating into Tesla’s global market share fast.

Stock surges while Musk dodges spotlight

Despite the recalls and sales pressure, Tesla’s stock has nearly doubled in six months, with a 34% jump since September alone. That momentum picked up after Elon Musk revealed he had bought nearly $1 billion worth of Tesla shares.

Investors responded quickly, sending shares higher, though some analysts warn the rally could be fragile.

Musk has been staying quiet in public. He’s been low-key since his high-profile visit to the White House and his political fallout with Donald Trump. Aside from a small jab at Transportation Secretary Sean Duffy, Musk hasn’t made headlines lately. But his silence may have less to do with strategy and more to do with his wallet.

Musk is currently chasing a $1 trillion compensation package, tied to performance goals. That deal goes to a vote on November 6 at Tesla’s shareholder meeting. Proxy firms are already urging shareholders to reject it, saying it’s too generous and could reduce their stake in the company.

Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
EUR/USD Price Forecast: Keeps bullish vibe above 1.1600 despite France’s deepening political crisisThe EUR/USD pair loses ground to near 1.1620 during the early European session on Monday.
Author  FXStreet
10 hours ago
The EUR/USD pair loses ground to near 1.1620 during the early European session on Monday.
placeholder
Fed’s October Rate Cut: Easing Cycle Continues, Gold Likely to Keep RisingLooking ahead, the Federal Reserve's interest rate meeting on 29 October will be a pivotal event shaping gold price trends.
Author  TradingKey
10 hours ago
Looking ahead, the Federal Reserve's interest rate meeting on 29 October will be a pivotal event shaping gold price trends.
placeholder
4 US Economic Events with Crypto Implications This WeekThis week will be action-packed, with multiple US economic events scheduled that are poised to influence traders’ and investors’ portfolios.
Author  Beincrypto
10 hours ago
This week will be action-packed, with multiple US economic events scheduled that are poised to influence traders’ and investors’ portfolios.
placeholder
USD/CAD Price Forecast: Testing range bottom, at the 1.3975 areaThe US Dollar is on its back foot agains its Canadian counterpart on Monday.
Author  FXStreet
10 hours ago
The US Dollar is on its back foot agains its Canadian counterpart on Monday.
placeholder
Dow Jones futures gain on improved market sentiment, awaits earnings from tech giantsDow Jones futures rise 0.65% to trade near 47,700 during European hours, ahead of the opening of the United States (US) regular session on Monday.
Author  FXStreet
11 hours ago
Dow Jones futures rise 0.65% to trade near 47,700 during European hours, ahead of the opening of the United States (US) regular session on Monday.
goTop
quote