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After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup

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Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock

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FinanceTesla

Tesla’s worst recall in years for 3,900 Cybertruck pedals adds to pile of bad news for Elon Musk

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The Associated Press
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April 19, 2024, 5:39 PM ET
Musk has previously complained about the difficulty of producing Tesla's Cybertruck.
Musk has previously complained about the difficulty of producing Tesla's Cybertruck.Antonio Masiello/Getty Images
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Tesla is recalling all 3,878 of the 2024 Cybertrucks sold so far after it discovered that the accelerator pedal can become stuck, potentially causing the vehicle to accelerate unintentionally and increase the risk of a crash.

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The accelerator pedal pad may dislodge and become trapped by the interior trim, according to a filing with the National Highway Traffic Safety Administration.

The recall involves model year 2024 Cybertrucks made between Nov. 13, 2023 and April 4, 2024, according to the NHTSA.

It’s one of a few recalls for Tesla, which earlier this year recalled nearly every vehicle sold in the U.S. after determining the dashboard warning lights were too small. Last December, Tesla recalled 2 million vehicles equipped with the autopilot feature after a driver-monitoring feature was deemed ineffective. Unlike the Cybertruck’s pedals, those recalls could be accomplished with a software update not requiring Tesla owners to bring the car to a dealership.

As of Monday, Tesla was not aware of any collisions, injuries or deaths related to the pedal issue, the NHTSA said. Cybertrucks in production had been outfitted with a new accelerator pedal component by Wednesday of this week, according to the NHTSA.

Tesla, which is headed by billionaire Elon Musk, said that it will replace or repair the accelerator pedal assembly for free. Owners may contact Tesla customer service at 1-877-798-3752. Tesla’s number for the recall is SB-24-33-003. Notification letters are expected to be mailed to vehicle owners in June.

The recall is the latest in a string of bad news for the U.S.’ leading electric vehicle maker. Tesla’s market valuation has fallen by nearly two-thirds since its November 2021 peak. The Cybertruck was delayed by two years from its original schedule, with the first dozen or so of the futuristic pickups delivered to customers in November 2023. Uncertainty remains over when large-scale production could begin.

Musk addressed the difficulties of mass producing the futuristic Cybertruck, saying during the company’s third-quarter conference call in October that “we dug our own grave with Cybertruck.” The company does not expect to hit 250,000 annual deliveries until sometime next year.

Last quarter, Tesla saw its first year-over-year sales decline since the pandemic. This year it has announced tens of thousands of layoffs and floated shuttering a planned low-cost EV, although Musk has denied the latter report. Still, the company’s seemingly erratic plans have worried investors, who this week flooded an open Q&A platform to ask about Musk’s priorities.

Meanwhile, Tesla’s board has asked shareholders to reinstate a multi-billion pay package for Musk that a Delaware judge threw out earlier this year. Approving Musk’s bonus, now worth $45 billion, is “a mater of fundamental fairness and respect to our CEO,” chairperson Robyn Denholm told investors.

—With reporting by Amanda Gerut and Irina Ivanova.

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