Tesla Recalls More Than 9,000 Model X SUVs Over Roof Trim That Could Detach
ForbesAug 17
Tesla Recalls Over 9K Model X Units Over Roof Issue
Above: A Tesla Model X is displayed during the Citi Taste of Tennis at Hyatt Regency Indian Wells Resort & Spa on March 5, 2018 in Indian Wells, California. Image copyright: Rich Fury/Stringer/Getty Images Entertainment via Getty Images
The Facts
Electric automaker Tesla has issued a recall for 9.1K Model X SUVs over an issue with cosmetic roof trim separating from the vehicle. This is the second time the company has issued a recall over the same issue, doing so in 2020.
The National Highway Traffic Safety Administration (NHTSA) says that the recall affects Model Xs produced in 2016. The NHTSA says that the cosmetic trim could separate from the vehicle, with Tesla saying the issue is due to an inadequate amount of primer being used.
The Spin
Narrative A
Investors and electric auto observers are growing increasingly restless by billionaire Elon Musk's behavior, and how this may be affecting the product Tesla is putting out. Recalls have plagued a company that was once the standard bearer for electric vehicles, but its CEO has been focused on other activities, such as venturing into social media. Perhaps a new, more focused leader is needed to get Tesla back on the right track.
Narrative B
Tesla doomsayers are motivated more by their unease with Musk's character than the fundamentals of the company. Recalls are a fact of life in automaking, and the company's growth in new markets, even in the face of stiff competition from cheaper Chinese vehicles, is a sign to the strong value this brand still has. Given that the company is on track to make tens of millions of vehicles this year, these recalls are insignificant.