Tesla faces new safety setback with 12,863-vehicle recall over power failure

Markets 2025-10-23 09:45

Tesla is recalling 12,863 electric vehicles across the U.S. due to a battery defect that can cause the cars to suddenly lose power while driving.

The issue, which increases the risk of a crash, affects Model Y SUVs and Model 3 sedans built between March and August 2025, according to documents Tesla filed with the National Highway Traffic Safety Administration (NHTSA).

The fault comes from a weak connection inside the battery pack. Tesla said this defect could cut off power to the wheels without warning. The company has already logged 36 warranty claims and 26 field reports connected to the problem.

However, no crashes, injuries, or deaths have been reported so far. Owners will need to bring in their cars to get the part replaced.

Battery fault adds to growing list of safety problems

This is not the only problem on Tesla’s plate. NHTSA confirmed last month that it is also investigating power issues in the electrically controlled doors on the 2021 Model Y. That probe was triggered by a Bloomberg investigation focused on the vehicle’s door handles. Tesla’s Cybertruck, which only launched recently, has already been recalled more than six times for different problems.

This latest battery recall piles onto Tesla’s long-running quality concerns. As more owners report technical failures, the spotlight on Tesla’s safety record keeps getting brighter. The company hasn’t commented beyond what it submitted to NHTSA. No timeline was given for how quickly repairs will be made, or whether loaner vehicles will be offered during service.

Meanwhile, Tesla is trying to shift attention away from its cars and toward artificial intelligence. That’s not exactly working. The company quietly launched cheaper versions of some of its vehicles, but the response was lukewarm. Sales have been under pressure since the federal EV tax credit expired last month, and Chinese competitors are eating into Tesla’s global market share fast.

Stock surges while Musk dodges spotlight

Despite the recalls and sales pressure, Tesla’s stock has nearly doubled in six months, with a 34% jump since September alone. That momentum picked up after Elon Musk revealed he had bought nearly $1 billion worth of Tesla shares.

Investors responded quickly, sending shares higher, though some analysts warn the rally could be fragile.

Musk has been staying quiet in public. He’s been low-key since his high-profile visit to the White House and his political fallout with Donald Trump. Aside from a small jab at Transportation Secretary Sean Duffy, Musk hasn’t made headlines lately. But his silence may have less to do with strategy and more to do with his wallet.

Musk is currently chasing a $1 trillion compensation package, tied to performance goals. That deal goes to a vote on November 6 at Tesla’s shareholder meeting. Proxy firms are already urging shareholders to reject it, saying it’s too generous and could reduce their stake in the company.

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This content is for informational purposes only and does not constitute investment advice.

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