Recall of Tesla cars due to malfunction how terrible news became good news
Electric car manufacturer Tesla Inc. (TSLA) has announced a recall campaign for 817 thousand cars of almost all models. But this news did not cause a significant drop in TSLA quotes, but on the contrary, gave them a positive impulse. Over the past few days, Tesla has received two demands from the National Highway Traffic Safety Administration (NHTSA) to fix problems at once.
First, there was a recall of 53.8 thousand cars due to the autopilot, which ignored a road sign requiring a stop. The second review is much more significant: almost a million vehicles do not remind the driver and passengers about unbuckled seat belts. NHTSA considered this a problem requiring urgent action.
A recall campaign for such a large number of cars usually requires significant expenses and negatively affects the brand’s reputation. But Tesla, in this case, on the contrary, was able to demonstrate the advantage of its technologies. The malfunctions remotely — updated the machines’ software via the Internet.
Moreover, most recalled cars had their problems fixed even before the NHTSA officially published the message. Thus, an extensive recall did not cause Tesla significant material and reputational damage. Nevertheless, many car owners perceived the revocable programs as another patch for their cars’ software.
At the same time, Tesla managed to turn a negative situation into an advertisement for the rapid elimination of potentially dangerous problems. Even at the start of its business, Tesla announced the unique advantages of updating cars’ software via wireless Internet. Now the company has demonstrated this advantage.
