Tesla Recalls Cars for Self-Driving Concerns
Tesla has announced a recall of nearly 363,000 vehicles in the US, citing concerns over its Full Self-Driving Beta technology. According to a filing with the National Highway Traffic Safety Administration (NHTSA), the system’s errors could result in increased risk of collisions if the driver fails to intervene. The system has been known to act dangerously at intersections, such as traveling straight through from a turn lane and proceeding through steady-yellow traffic lights. The recall will impact certain Model 3, Model X, Model Y, and Model S units manufactured between 2016 and 2023, and Tesla has said it will fix the issue through an over-the-air software update by April 15.
This recall could have significant implications for Tesla, given that CEO Elon Musk has touted Full Self-Driving as a critical component of the company’s long-term prospects. Despite the NHTSA’s concerns and the recall, Musk has tweeted that the term “recall” is “flat wrong” since the issues can be fixed through a software update. However, the recall has raised new questions about the accuracy and safety of Tesla’s self-driving technology.
This is not the first time that Tesla’s automated-driving technology has come under scrutiny. The NHTSA has been investigating how Tesla handles crash scenes since 2021 after several collisions with first responders and other vehicles. Last year, the agency also opened an investigation into complaints of Tesla cars with Autopilot driver-assist that suddenly brake at high speeds. Additionally, the company has been accused of exaggerating the capabilities of its technology, with the president of the Insurance Institute for Highway Safety, David Harkey, stating that Tesla “does not have adequate safeguards to ensure drivers will pay full attention to the road.”
Tesla’s shares fell by almost 6 percent in intraday trading after the recall notice was announced, however the Nasdaq was also facing alot of downward pressure. The company’s website continues to stress that its autonomous features, such as Autopilot and Full Self-Driving, “require active driver supervision and do not make the vehicle autonomous.” It remains to be seen how this recall will impact Tesla’s reputation and stock price in the long run, but it does emphasize the ongoing challenges and concerns associated with the development of self-driving technology.
TSLA Stock Price Forecast & Analysis
Based on the Tesla Inc stock forecasts from 45 analysts, the average analyst target price for Tesla Inc is USD 246.14 over the next 12 months. This indicates that there is potential for Tesla’s stock to appreciate in value in the coming year. It is important to note, however, that these price targets are just estimates and may not always be accurate.
The average analyst rating for Tesla Inc is a “Strong Buy”, which is a positive signal for the company. This rating is based on the consensus of the 45 analysts who cover the stock, and it indicates that most of them believe that Tesla’s stock is undervalued and has room to grow. The Strong Buy rating is a bullish signal, and it suggests that investors may want to consider buying Tesla’s stock.
Stock Target Advisor’s own stock analysis of Tesla Inc is Slightly Bullish, which is based on 11 positive signals and 5 negative signals. This analysis suggests that the stock has a slightly bullish outlook, which means that there is potential for the stock to appreciate in value. The positive signals may include positive earnings reports, high sales growth, and positive sentiment among investors, while the negative signals may include high debt levels, low liquidity, and increased competition.
Tesla Inc’s stock price has changed by +6.43% over the past week, +75.03% over the past month, and -30.32% over the last year. This indicates that the stock is volatile and can fluctuate widely in a short period of time. The past year has been challenging for Tesla’s stock, with the COVID-19 pandemic and increased competition in the electric vehicle market weighing on the stock’s performance. However, the recent surge in the stock’s price suggests that investors are optimistic about the company’s future.
