Tesla, Inc. TSLA stock took a hit on Thursday following an order from the National Highways Traffic Safety Administration (NHTSA) to initiate a recall of over a million vehicles over the automatic window reversal system not reacting correctly after detecting an obstruction.
The NHTSA said a closing window without the proper automatic reversing system might exert excessive force by pinching a commuter before retracting, increasing the risk of injury.
CEO Elon Musk took to Twitter to clarify that it wasn’t that big of a problem and can be handled easily.
A Twitter user going by the handle @stocktalkweekly said in a tweet that this wasn’t a physical recall and Tesla has communicated that it will perform an over-the-air software update to rectify the issue. Replying to the tweet, Musk said the terminology [recall] is “outdated and inaccurate.”
The OTA software update is a tiny one, he added. He also clarified that to the best of the company’s knowledge, there hadn’t been any injuries.
The terminology is outdated & inaccurate. This is a tiny over-the-air software update. To the best of our knowledge, there have been no injuries.
— Elon Musk (@elonmusk) September 22, 2022
Tesla bull and fund manager Ross Gerber expressed a similar opinion.
“A Tesla is much more software than hardware and understanding the complexity of what they’ve built is hard to fathom. They update the software when issues arise,” he said.
Price Action: Tesla closed Thursday’s session down 4.06% at $288.59, according to Benzinga Pro data.