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Tesla is recalling almost 200,000 vehicles in the U.S. following a notification from the National Highway Traffic Safety Administration (NHTSA) about a “software instability” affecting the rearview camera display. The recall applies to certain 2023 Model S, X, and Y vehicles equipped with Tesla’s full self-driving 4.0, the company’s driverless software system.
The NHTSA indicated on its website that the software bug prevented the rearview camera image from displaying properly. Tesla has already addressed the issue by releasing an over-the-air software update at no cost to owners. Owners are expected to be notified of the recall by mail starting March 22.
The recall encompasses approximately 199,575 vehicles, and Tesla’s reference number for the recall is SB-24-00-002. Customers with questions or concerns are encouraged to contact Tesla’s customer services.
This recall comes on the heels of Tesla’s record recall last month, affecting 2 million vehicles due to a defective system designed to ensure driver attention while using the Autopilot feature. The NHTSA investigated several fatal crashes involving Tesla’s Autopilot software before the recall was issued.
The latest recall also coincides with Tesla’s recent financial challenges. Earlier this week, the company provided a grim financial outlook, suggesting that its vehicle volume growth in 2024 may be notably lower than observed in the previous year. Tesla attributed this slowdown to its focus on launching the “next-generation vehicle” in Texas.
The company has been aggressively reducing car prices, with recent cuts in Europe reaching up to 8.1%. These reductions follow a series of price cuts made last year as Tesla aims to maintain its leadership in the electric vehicle market. However, the company faces increasing competition, notably from BYD, the Chinese electric car manufacturer backed by Warren Buffett, which surpassed Tesla as the largest EV maker by sales in the fourth quarter.