AutosTesla halts Cybertruck production over accelerator issue linked to liquid soap

Tesla halts Cybertruck production over accelerator issue linked to liquid soap

Tesla has problems with its Cybertruck.
Tesla has problems with its Cybertruck.
Images source: © Getty Images | 2024 Wang HE

8:43 AM EDT, April 28, 2024

Tesla utilized liquid soap to facilitate the assembly of the accelerator pedal cover in its Cybertrucks, an approach which has led to the pedal sticking in some instances. Following directives from the Department of Transportation, the company has halted vehicle production.

All of Tesla's electric pickups are being recalled to address the risk associated with the accelerator pedal sticking, an issue reported increasingly frequently.

Issues with Tesla's Cybertruck. The role of soap

The first report of this issue surfaced on March 31 of this year, triggering a flurry of similar complaints. Shortly thereafter, the National Highway Traffic Safety Administration (NHTSA) issued an official report identifying liquid soap residue—used during the assembly process to ease the installation of the accelerator pedal cover—as the primary culprit. This residue diminishes the cover's grip, causing it to shift over time and ultimately detach.

In mid-April, acknowledging the defect, Tesla halted the production of new Cybertrucks as instructed by the NHTSA.

However, structural issues with the Cybertruck aren't the only challenges facing Elon Musk's company. Tesla's financial results for the first quarter of 2024 fell short of analyst expectations. The company's adjusted earnings per share stood at 71 cents, below the 74 cents predicted by analysts. Revenue decreased by about 9% compared to the same period last year, totalling $21.30 billion—less than the $22.15 billion forecast. Moreover, net profit plummeted by 55% to $1.13 billion from $7.93 billion a year prior.

Additionally, Tesla's stock has suffered a more than 40% decline this year amid concerns over softening demand, intensifying competition in China, and the company's ongoing price reductions. In the first quarter, Tesla saw an 8.5% year-over-year drop in vehicle deliveries.
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