Tesla, Inc. TSLA is under scrutiny after the U.S. auto safety regulator launched a defect investigation into Model 3 compact sedans, citing concerns that emergency door release controls may be difficult to access or identify in critical situations.
Per the National Highway Traffic Safety Administration (NHTSA), the probe covers about 179,071 model year 2022 vehicles. It was initiated on Dec. 23 following a defect petition alleging that the mechanical door release is concealed, unlabeled and not intuitive to locate during emergencies.
The automaker primarily uses electronic door latches that operate via buttons instead of conventional mechanical handles. Although the vehicles are equipped with manual door releases for emergencies or power outages, safety experts have long warned that these releases are not consistently visible, clearly labeled or easy to find, especially for rear-seat passengers.
Opening a defect investigation does not automatically result in a recall, but it represents the first stage of a regulatory review that could lead to further action if a safety-related defect is identified.
This marks the second probe this year into Tesla’s door handles. In September, the NHTSA opened an investigation into the 2021 Model Y SUV, affecting roughly 174,000 vehicles, after reports that parents were unable to open the electric doors to reach their children following drives. In four cases, parents reportedly broke the vehicle’s windows to rescue their children.
Tesla’s Zacks Rank & Key Picks
TSLA carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the auto space are General Motors Company GM, OPENLANE, Inc. KAR and Garrett Motion Inc. GTX, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GM’s 2025 and 2026 EPS has improved 8 cents and 47 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for KAR’s 2025 sales and earnings implies year-over-year growth of 9.4% and 48.2%, respectively. EPS estimates for 2025 have improved 9 cents in the past 60 days. EPS estimates for 2026 have improved 2 cents in the past 30 days.
The Zacks Consensus Estimate for GTX’s 2025 sales and earnings implies year-over-year growth of 2.6% and 17.5%, respectively. EPS estimates for 2025 have improved a penny in the past 30 days. EPS estimates for 2026 have improved 8 cents in the past 60 days.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
