Tesla (TSLA) Stock: Drops After Recall of Over 63,000 Cybertrucks Over Bright Light Software Glitch

TLDR

• Tesla recalls 63,619 Cybertrucks over bright parking lights.
• Issue resolved via free over-the-air software update.
• No injuries or crashes linked to the defect.
• Comes amid another recall of 12,963 Model 3 and Y vehicles.
• Tesla reports record Q3 revenue but weaker profit margins.

Tesla, Inc. (NASDAQ: TSLA) stock traded at $424.40, down 3.32% in Thursday’s session, following a new recall involving 63,619 Cybertrucks.

Tesla, Inc., TSLA

The electric vehicle maker said the recall was prompted by a software glitch that caused the front parking lights to shine too brightly, posing a visibility risk for oncoming drivers. Tesla has already released an over-the-air (OTA) software update to correct the issue free of charge.

The recall affects Cybertrucks built between November 13, 2023, and October 11, 2025. Tesla discovered the issue during an internal review after testing confirmed excessive light brightness levels. The automaker stated it has not received any reports of crashes, injuries, or fatalities related to the defect.

OTA Software Fix for Light Brightness

According to Tesla’s report to the National Highway Traffic Safety Administration (NHTSA), the issue stemmed from parking lights emitting above the legal threshold for road safety. The OTA update automatically adjusts the light brightness to ensure compliance with U.S. standards.

Owners can check recall eligibility through the Tesla smartphone app or the company’s recall website. All repairs are free, regardless of vehicle age or warranty coverage.

Tesla noted that its vehicles are designed to receive software updates similar to smartphones, enabling faster and less costly fixes compared to traditional recalls. This strategy has helped Tesla maintain rapid response times to potential safety issues while avoiding large-scale service center visits.

Previous Recalls and Broader Safety Scrutiny

This Cybertruck recall adds to a growing list of recalls for Tesla’s newest model since its launch in late 2023. Earlier this year, the company addressed issues with accelerator pedal covers, windshield wipers, and trim panels, all resolved via remote updates.

The recall follows another issue identified this week involving 12,963 Model 3 and Model Y vehicles over a battery-pack defect that could cause propulsion loss.

Tesla continues to face regulatory attention. The NHTSA recently opened an investigation into 2.88 million vehicles equipped with Tesla’s Full Self-Driving (FSD) software after receiving reports of traffic violations and crashes linked to the system.

Earnings and Market Outlook

Despite the recalls and regulatory scrutiny, Tesla reported record third-quarter revenue, surpassing Wall Street expectations. The revenue boost came as U.S. buyers rushed to take advantage of an expiring federal tax credit. However, profit margins lagged behind forecasts due to higher tariffs, research and development expenses, and reduced regulatory credit revenue.

While Tesla shares declined this week, the stock remains up 9% year-to-date, reflecting sustained investor confidence in the company’s long-term innovation and EV market dominance despite short-term operational challenges.

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