Tesla Falls on Recalling Nearly 54,000 Vehicles Over Software Fault

Tesla stock (NASDAQ:TSLA) traded 0.7% lower in premarket Tuesday as the company recalls 53,822 cars and SUVs because their “Full Self-Driving” software lets them roll through stop signs without coming to a complete halt.

The recall covers Model S sedans and X SUVs from 2016 through 2022, Model 3 sedans built between 2017 and 2022 and Model Y sports utility vehicles made 2020 through 2022.

The company will disable the feature with an over-the-internet software update this month, according to documents posted by regulator National Highway Traffic Safety Administration.

Selected Tesla drivers are ‘beta testing’ the FSD software. The company says the vehicles cannot drive themselves and drivers must be ready to take control at any point of time. FSD vehicles remain a priority for the company, CEO Elon Musk said last week while announcing its fourth quarter results. The company has repeatedly failed to meet Musk’s publicly stated predictions.

According to the documents, Tesla agreed to the recall after two meetings with officials from the safety regulators. Tesla knows of no crashes or injuries caused by the feature.

This is the second major recall by the EV-maker in about a month. Late December, it ordered recall of more than 475,000 of its Model 3 and Model S electric cars to address rearview camera and trunk issues that increased the risk of crashing, according to Reuters.