Tesla's Stock Decline Raises Concerns for Future Vehicle Purchases

Tesla's Stock Decline Raises Concerns for Future Vehicle Purchases

Tesla's stock fell 4% to nearly $469 after NHTSA announced investigations into door release systems on over 353,000 vehicles, raising safety concerns for consumers.

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Tesla's stock has seen a decline of approximately 4%, falling to nearly $469 per share on the NASDAQ as of December 29. This drop followed the announcement from the National Highway Traffic Safety Administration (NHTSA) regarding a new investigation into the mechanical door release systems of the 2022 Model 3, Tesla's second-best selling vehicle.

The investigation, initiated on December 24, covers about 179,071 cars and was prompted by complaints that the door release mechanism is "hidden, unlabeled, and not intuitive to locate during an emergency." This announcement came after Tesla's stock was valued at nearly $490 on December 24, just before the news broke.

In September, NHTSA had already started examining the emergency door handles of the Model Y, the company's best-selling model, following reports from nine owners who encountered difficulties in opening the doors. This earlier investigation involved 174,290 vehicles and included one incident that resulted in injuries.

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