218,000 Reasons to Sell Tesla Stock in May

When there was a period recently when Elon Musk was not making the headlines every day, Tesla (TSLA) shareholders must have heaved a sigh of relief. They believed that Musk, after his political sojourn and an approved $1 trillion pay package, was finally going all in to MTGA (Make Tesla Great Again) from MAGA (Make America Great Again).

Well, these shareholders have to hold their horses (or EVs) again, as after involving himself in a legal scuffle with OpenAI, more bad news has come in for Tesla.

More News from Barchart

Tesla To Recall More Than 200,000 Vehicles

According to a report from Reuters, Tesla is set to recall 218,800 vehicles because of issues in the images of its rearview camera. Latency in the appearance of images has been purportedly identified as the issue.

And this is nothing new for the company.

Over the past several years Tesla has recorded a substantial number of vehicle recalls across its entire product lineup. Regulatory agencies like the National Highway Traffic Safety Administration aggregate these figures routinely. For the Model Y alone there have been over eighty distinct recall campaigns since the vehicle launched in 2020, which averages roughly fourteen recalls annually. Beyond camera glitches, previous recalls have involved severe physical defects. For example, late 2025 campaigns targeted faulty battery pack contactors that triggered sudden propulsion losses while vehicles were in motion. Other historical issues included improperly secured horn wires and electronic power steering assist dropouts.

When evaluating whether these problems recur or see permanent rectification, investors must distinguish between hardware failures and software bugs. Physical hardware defects require traditional service center visits for complete parts replacement. Once identified, Tesla typically changes suppliers or alters manufacturing tolerances to eliminate the hardware flaw in all future production iterations. Conversely, software-related problems display a higher recurrence rate. Because Tesla constantly pushes…

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