Norway Clears Tesla: No Recall Amid Suspension Concerns, Authorities To Monitor Closely

Tesla, Inc. TSLA has reportedly received clearance from Norway’s traffic safety regulator as it finds no grounds for recalling S and X Model vehicles over suspension safety concerns.

The regulatory examination in Norway was initiated in response to more than twelve customer complaints submitted to the agency in 2022 regarding the abrupt failure of suspension components, including the rear lower control arm, Reuters reported.

“The Norwegian Public Roads Administration (NPRA) believes that a break in the rear lower control arm does not constitute an unacceptable risk, and that there is no basis for demanding a recall of the vehicles,” the regulator said in a statement, which Reuters noted.

The NPRA stated it would keep a close watch on the situation, the report added. 

Also Read: Tesla Stock Plunges Premarket, Eyes 8-Month Low After Q4 Letdown: Key Levels To Watch

The decision against a recall was based on incidents occurring at low speeds, often during reverse maneuvers. 

Additionally, the reported cases were deemed low compared to the overall number of S and X Models in Norway, per the report.

In August, the company informed the regulator that it perceived a low likelihood of a significant problem with a compromised or broken rear lower control arm. 

Yesterday, Ford Motor Company F was in the headlines for recalling 2.24 million older Explorer sport utility vehicles globally because trim retention clips may not be properly engaged.

Earlier this month, Tesla recalled more than 1.6 million vehicles in China due to concerns related to the misuse of autosteer features.

This action comes on the heels of a similar recall initiated by the electric vehicle giant in the U.S. last month, affecting over 2 million vehicles equipped with all versions of Autosteer.

Yesterday, Tesla reported fourth-quarter revenue of $25.17 billion, which was up 3% year-over-year. The revenue missed a Street consensus estimate of $25.62 billion.

Read Next: Tesla Q4 Earnings Highlights: Revenue Miss, EPS Miss, Model Y A Global Bestseller, Next-Gen Vehicle Update And More

Price Action: TSLA shares are trading lower by 9.30% to $188.31 on the last check Thursday. 

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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