Tesla Asked To Recall 158,000 Model S, X Units By US Over Touchscreen Failures

Tesla Inc TSLA has been asked by the National Highway Traffic Safety Administration to recall 158,000 Model S and Model X vehicles due to concerns about failing touchscreens.

What Happened: The federal agency said in a letter to the Palo Alto, California-based automaker on Wednesday that its Office of Defect Investigation is looking into the media control units whose failures result in loss of rearview camera and other safety-related vehicle functions in the two vehicles.

The touchscreen failures relate to model years 2012 through 2018 in the case of Model S and 2016 through 2018 for Model X vehicles, as per the NHTSA.

“During an MCU failure, the screen becomes black, and a rearview/backup camera image is no longer available to the driver. If this image is not available, the risk of crash increases potentially causing injury or death,” wrote the NHTSA.

Why It Matters: The letter does not make it binding upon Tesla to carry out a recall but if the company decides not to conduct the recall it must provide the ODI with a full explanation of its decision.

See Also: Tesla Vehicles Don't Suffer From Unintended Acceleration, NHTSA Says

The agency acknowledged that the Elon Musk-led automaker had implemented several over-the-air updates to “attempt to mitigate” some of the issues it described but termed the updates as “procedurally and substantively insufficient.”

This is one of the biggest safety recalls affecting Tesla vehicles, the Wall Street Journal reported. 

Sam Abuelsamid, a Guidehouse Insights analyst told the Journal that the recall was significant and could cost the automaker between $300 million to $500 million.

Tesla recalled 9,136 Model X cars from the model year 2016 for issues related to an improperly attached cosmetic roof trim, and 401 Model Y vehicles from the model year 2020 due to improperly tightened bolts in November.

Price Action: Tesla shares traded almost 1.3% lower at $843.10 in the after-hours session on Wednesday and closed the regular session 0.59% higher at $854.41.

See Also: How To Buy Tesla Stock.

Related Links: Elon Musk Says Safety 'Primary Design Goal' For Tesla As NHTSA Expands Probe

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