Tesla Recalls Some Model Y Evs, Stock Climbs Toward A Seven-Day Winning Streak

Tesla Inc. has initiated a voluntary safety recall of specific Model Y electric vehicles due to concerns regarding the potential loss of steering control. The recall affects 137 Model Y vehicles manufactured in model years 2022 and 2023.

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The National Highway Traffic Safety Administration (NHTSA) acknowledged the recall, stating that a loose fastener could result in the steering wheel disconnecting from the steering column. This issue poses a risk of losing steering control and increases the potential for accidents.

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Tesla's stock (TSLA, +1.67%) experienced a 2.7% increase, reaching a seven-month high during morning trading on Monday. This positive momentum puts the stock on track for its seventh consecutive gain, marking the longest winning streak since February 9.

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During the current winning streak, which has seen a 20.2% surge, Tesla's stock is heading toward its highest closing level since November 1. It is noteworthy that the company's stock has soared by 73.5% year-to-date.

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Tesla disclosed that it became aware of the steering wheel condition through four warranty claims and one field report between November 12, 2022, and April 26, 2023. However, there have been no reported incidents of crashes, injuries, or fatalities associated with this condition.

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In comparison, the Global X Autonomous & Electric Vehicles exchange-traded fund (DRIV, -0.49%) has recorded a 22.9% rally, while the S&P 500 index (SPX, +0.06%) has advanced by 11.8% during the same period.

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