Why Tesla Is Recalling Nearly 2.2M Vehicles, Almost All Its Cars Sold in the US

Tesla (TSLA) shares fell over 3% in early trading Friday after recalling nearly 2.2 million vehicles to remedy a font size on the vehicles’ warning lights panel that is too small, in Tesla’s largest recall to date.

The National Highway Traffic Safety Administration (NHTSA) said the instrument panel for the vehicles’ brake, park, and antilock brake system (ABS) warning lights has a font size that is too small and “could reduce the driver’s detection of it when illuminated, increasing the risk of a collision.”

The issue affects 2.19 million Tesla vehicles, including the Model S, Model X, Model 3, Model Y, and the 2024 Cybertruck—almost all of Tesla’s vehicles sold in the U.S.

Tesla will release a software update free of charge to address the safety hazard, the NHTSA said, noting that owner notification letters are expected to be mailed on March 30, 2024.

Just a few weeks earlier in December, Tesla recalled more than 2 million vehicles in the U.S. to install new safeguards for its Autopilot feature after the NHTSA raised concerns about the system.

Tesla shares were down 3.1% at $183.08 per share as of about 10:30 a.m. ET Friday. They’ve lost more than 26% of their value so far this year.