Tesla Backs Investor's Petition To Fulfill Elon Musk's Longstanding Regulatory Wish: Stop Calling OTA Fixes As 'Recalls'
Portfolio Pulse from Anan Ashraf
Tesla Inc (NASDAQ:TSLA) supports a shareholder's petition to the NHTSA for not classifying over-the-air (OTA) software updates as 'recalls' and to allow electronic recall notifications. The petition, initiated by Tesla investor Sawyer Merritt, argues for environmental and cost benefits, and for a better understanding of vehicle safety through modern notification methods. Elon Musk has criticized the current recall terminology, especially after a recent 'recall' involving 2.2 million vehicles for a minor software fix.
March 13, 2024 | 8:13 am
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Tesla Inc supports a petition for the NHTSA to modernize recall notifications and not classify OTA software updates as recalls, aligning with Elon Musk's views.
Tesla's support for the petition could lead to regulatory changes that benefit the company by reducing the negative perception and logistical costs associated with recalls. This aligns with Elon Musk's longstanding criticism of the current recall terminology and process. If the NHTSA considers these changes, it could improve Tesla's operational efficiency and public image, potentially having a positive short-term impact on its stock.
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