Tesla Inc. has announced a recall of 12,963 vehicles in the U.S. due to a battery pack component defect that could cause a sudden loss of drive power, increasing the risk of a crash. The recall affects select 2025 Model 3 and 2026 Model Y vehicles, as reported by the U.S. National Highway Traffic Safety Administration (NHTSA).
Battery Defect Details
Tesla identified the issue in the battery pack contactor, which could fail and lead to an unexpected loss of drive power while driving. As of October 7, 2025, the company had received 36 warranty claims and 26 field reports related to the defect. Tesla confirmed that there have been no reported collisions, injuries, or fatalities associated with the issue.
To resolve the problem, Tesla will replace the affected battery pack contactor free of charge at authorised service centres. Vehicle owners will be contacted directly by Tesla regarding the recall procedure.
Regulatory Context
The recall comes amid heightened scrutiny of Tesla’s Full Self-Driving (FSD) system by Congress and the NHTSA. Earlier this month, the NHTSA launched an investigation into 2.88 million Tesla vehicles equipped with FSD following more than 50 reports of traffic safety violations and related crashes.
Financial and Market Impact
Tesla is scheduled to release its Q3 2025 financial results on October 22, 2025, after market close. Analysts will closely monitor the potential impact of the recall and regulatory investigations on the company’s financial performance and brand reputation.
Owner Action
Owners of affected Tesla vehicles are advised to check their eligibility for the recall on Tesla’s official website or contact their local Tesla service centre for scheduling. Prompt action ensures safety and compliance with regulatory guidelines.
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