Summary
- Tesla recalls nearly all Cybertrucks in the U.S.
- NHTSA cites risk of detaching trim panel that could cause a crash
- Potential reputational impact for Tesla, analysts suggest
Tesla (TSLA.O) has announced a recall affecting nearly all Cybertrucks in the United States due to an issue with an exterior panel that may detach while driving. This recall, which was revealed on Thursday, affects over 46,000 vehicles built between November 2023 and February 27, 2025, and marks the eighth recall for the electric pickup truck since January 2024.
While Tesla doesn’t publicly break down Cybertruck deliveries, analysts suggest that these vehicles make up the vast majority of Cybertrucks currently on the road. This recall could be a setback for Tesla, which has already faced challenges in 2025, including increased competition, an aging product lineup, and criticism surrounding CEO Elon Musk’s role in federal budget cuts under the Trump administration.
The recall addresses a potential hazard where a stainless-steel exterior trim panel could detach from the vehicle, posing a road hazard and increasing the risk of an accident. Tesla acknowledged 151 warranty claims possibly related to this issue, though it said no collisions or injuries have been reported.
Demand for the Cybertruck had already begun to falter late last year, following several delays. The vehicle's sales are still a small fraction of Tesla's overall sales, which totaled 1.79 million vehicles in 2024.
"Recalling an entire production batch, especially concerning physical items like body panels, brings attention to quality issues that Tesla has avoided in the past," said Sam Fiorani, vice president of research at AutoForecast Solutions. "Reputations can take years to build and moments to tarnish."
This recall also follows a growing shift in sentiment towards Tesla, marked by protests at its U.S. stores and sales boycotts. Tesla's stock ended up slightly on Thursday despite the recall.
In a live-streamed meeting later that evening, Tesla CEO Elon Musk did not address the recall but praised the Cybertruck's "five-star safety rating" from the National Highway Traffic Safety Administration (NHTSA), calling it "very safe in a crash." He also encouraged investors to hold onto their shares.
Multiple Recalls
Tesla led the list of U.S. vehicle recalls in 2024, with 5.1 million vehicles recalled, according to recall management firm BizzyCar. However, most of Tesla's recalls are resolved through over-the-air software updates.
For this latest recall, Tesla plans to replace the rail panel assembly with a new one that meets durability requirements. Previously, the company had used a structural adhesive to bond the assembly, which was found to be susceptible to environmental factors. The updated version will use a stronger adhesive, reinforced by a welded stud and nut, to ensure the panel is securely attached.
Tesla expects to begin using the updated trim in production on Friday, and vehicles produced before then but still in Tesla’s possession will be retrofitted before delivery.
The issue was first flagged to Tesla by a vehicle owner on February 21, who reported a rail panel detachment.
Analysts believe the recall will not significantly affect Tesla’s financial performance for the March quarter, as Cybertruck sales are still small compared to the more popular Model 3 and Model Y.
Reporting by David Shepardson in Washington, Arsheeya Bajwa, Akash Sriram, and Rishabh Jaiswal in Bengaluru; Additional reporting by Chris Kirkham; Editing by Mrigank Dhaniwala, Nick Zieminski, and Anil D'Silva
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