Tesla Recalls Most Cybertrucks due to Trim Detaching from Vehicle

A person sits inside a Tesla Cybertruck at a Tesla showroom in New York City, US, January 2, 2025. REUTERS/Adam Gray/File Photo
A person sits inside a Tesla Cybertruck at a Tesla showroom in New York City, US, January 2, 2025. REUTERS/Adam Gray/File Photo
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Tesla Recalls Most Cybertrucks due to Trim Detaching from Vehicle

A person sits inside a Tesla Cybertruck at a Tesla showroom in New York City, US, January 2, 2025. REUTERS/Adam Gray/File Photo
A person sits inside a Tesla Cybertruck at a Tesla showroom in New York City, US, January 2, 2025. REUTERS/Adam Gray/File Photo

Tesla said Thursday it is recalling nearly all Cybertrucks in the United States to fix an exterior panel that could detach while driving, the latest in a series of call-backs for the pickup truck.

The recall covers just over 46,000 vehicles built from November 2023 through Feb. 27 of this year, Tesla said in a filing with the National Highway Traffic Safety Administration.

The recall could prove to be a setback for Tesla, whose stock has lost about half its value this year as the EV automaker grapples with rising competition, an aging lineup, and backlash against CEO Elon Musk's controversial role overseeing cuts to federal spending in the Trump White House, Reuters reported.

The recall addresses risks a stainless-steel exterior trim panel can detach from the vehicle, making it a road hazard boosting the risk of a crash, Tesla said. Tesla's service will replace the rail panel assembly with a new one that meets durability testing requirements, the automaker said.

On Feb. 21, NHTSA notified Tesla of a vehicle owner that alleged a rail panel detachment.

Tesla said a detached rail panel may create a detectable noise inside the cabin or customers may observe the panel coming loose or separating from the vehicle.

Tesla said it is aware of 151 warranty claims that may be related to the recall issue, but no collisions or injuries.

While Tesla does not break out deliveries of its Cybertrucks, the recalled vehicles represent a vast majority of the Cybertruck vehicles on the road, based on analyst estimates.

Demand for the unconventional EV pickup has already shown signs of weakness toward the end of last year, following several delays.

Shares of the EV maker fell 1.4% in premarket trading.

Tesla shares, initially boosted post-election due to Musk's relationship with US President Donald Trump, have fallen nearly 42% this year.

Analysts have pointed to a change in sentiment toward the EV maker from existing customers and potential new buyers, as reactions toward the brand such as protests at Tesla stores across the US and sales boycotts emerge.

Tesla accounts for a large portion of recalled vehicles in the US. In 2024, Tesla topped the list for US recalls with its vehicles accounting for 5.1 million call-backs, according to recall management firm BizzyCar. However, most issues for the brand's cars were usually resolved with over-the-air software updates.

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Beijing to Release Manus, DeepSeek’s Next Generation

The DeepSeek logo is seen in this illustration taken on January 29, 2025. (Reuters)
The DeepSeek logo is seen in this illustration taken on January 29, 2025. (Reuters)
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Beijing to Release Manus, DeepSeek’s Next Generation

The DeepSeek logo is seen in this illustration taken on January 29, 2025. (Reuters)
The DeepSeek logo is seen in this illustration taken on January 29, 2025. (Reuters)

Chinese artificial intelligence startup Manus on Thursday registered its China-facing AI assistant and was featured for the first time in a state media broadcast, highlighting Beijing's strategy of boosting domestic AI firms that have received overseas recognition.

Since China's DeepSeek shocked Silicon Valley by releasing AI models comparable to its US competitors but developed at a fraction of the cost, Chinese investors have been on the lookout for the next domestic startup with the potential to upend the global tech order.

Some have pointed to Manus. The company went viral on X a few weeks ago by releasing what it claimed to be the world's first general AI agent, capable of making decisions and executing tasks autonomously, with much less prompting required compared to AI chatbots like ChatGPT and DeepSeek.

Beijing is now showing signs that it will support Manus' rollout within China, echoing its response to DeepSeek’s success. State broadcaster CCTV on Thursday devoted television coverage to Manus for the first time, publishing a video on the difference between its AI agent and DeepSeek's AI chatbot.

Beijing's municipal government on Thursday announced that a Chinese version of an earlier Manus product, an AI assistant called Monica, had completed the registration required for generative AI apps in China, clearing an important regulatory hurdle.

Chinese regulators require all generative AI applications released in the country to abide by strict rules, partly designed to ensure these products do not generate content considered sensitive or damaging by Beijing.

Last week Manus announced a strategic partnership with the team behind tech giant Alibaba's Qwen AI models.

The move could bolster the domestic roll-out of Manus' AI agent, which is currently only available to users with invite codes and has a waiting list of 2 million, according to the startup.

In the markets, Hong Kong and China stocks declined on Friday and registered weekly losses, as tech shares tumbled on mounting profit-taking pressure.

The Hang Seng Tech Index slid 3.4% on Friday, and Hong Kong's benchmark Hang Seng Index lost 2.1%. Both indexes registered back-to-back weekly losses for the first time since January.

In Hong Kong, chipmaker Semiconductor Manufacturing International Corporation slid 7.5% to a one-month low, while market heavyweight Alibaba lost 3.5%.

China's blue-chip CSI300 index dipped 1.5%, ending the week with a 2.3% loss in its largest retreat since January. The Shanghai Composite Index lost 1.3%.

The tech sector also paced declines onshore. Mainland's tech-focused Star 50 Index dropped 2.1% and AI-related shares slipped 3%.

"It's normal to see some pullbacks at these levels after such a strong rally this year - this doesn't even qualify as a correction," said Dickie Wong, Kingston Securities executive director.

The optimism around China's “two sessions,” DeepSeek and President Xi Jinping's meeting with tech leaders has already been priced in with major indexes at current levels, prompting investors to take profit, he added.

The Hang Seng Tech index has lost 4.1% this week in a second week of decline - the longest losing streak since the opening weeks of the year.

However, the gauge is still up 26% year-to-date.