U.S. regulators said on Friday they were reviewing claims that Tesla Inc should ...
WASHINGTON - U.S. regulators said on Friday they were reviewing claims that Tesla Inc should have recalled 2,000 of its electric cars in May instead of issuing a software upgrade to fix a potential defect that could have resulted in battery fires.
The U.S. National Highway Traffic Safety Administration said it opened a review to evaluate claims made in a defect petition about Tesla’s handling of the software upgrade in 2,000 Model S and Model X vehicles from the 2012-2019 model years. The 2,000 vehicles covered by the defect petition to NHTSA received a battery management software upgrade in May in response to a potential flaw that could trigger non-crash-related fires. The petition was filed Sept. 17 by the offices lawyer Edward C. Chen on behalf of Tesla owners.
Tesla shares dropped about 2% from the session high on Friday but recovered slightly to close down 0.7% at $231.43.In August, a proposed class-action lawsuit filed in California on behalf of a Tesla owner by Chen claimed Tesla knew some vehicle batteries were defective and “pushed out software updates despite knowing that the class vehicles would suffer from loss in range and performance.”
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