Why Tesla is recalling over 1 Lakh of its electric cars
The world’s largest electric car manufacturer, Tesla, is recalling 1,30,000 cars due to an overheating issue that is causing their touchscreen display to malfunction. The company has already released an over-the-air update to fix the issue in 4 of its affected models.
According to authorities, during fast-charging, the infotainment CPU was not able to cool sufficiently causing the centre screen display to lag or go blank. This could prevent drivers from using their rearview cameras, adjusting the speed of their windshield wipers, as well as cause problems in shifting.
In fact, this isn’t the first recall that Tesla has rolled out in recent times. Just last December, the company recalled nearly half a million Model 3 and Model S cars for a malfunctioning trunk latch system.
Another 579,000 cars were recalled in February to remove a “Boombox” feature that bizarrely obscured pedestrian noise! Tesla has in total issued 11 recalls so far in 2022.
So, how does Tesla, or for that matter, any company, deal with product recalls?
Product recalls are expensive affairs. What with the lost sales, replacement costs, lawsuits, and compensation to affected consumers, they can be devastating even for large companies. As for smaller companies with virtually no brand recognition and limited cash flow, a product recall can be their downfall.
And that’s why Product Recall Insurance is so necessary– especially for manufacturing companies.
From shipping, storage and disposal/repair costs, to business interruption and payable damages, this insurance handles all expenses and costs arising out of a product recall.
A Product recall cover can be opted for under a Product Liability Insurance policy or even a Commercial General Liability (CGL) policy.
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Read more about how product-related liabilities are covered: Product Liability Insurance