Tesla’s Broken Doors

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By Douglas A. McIntyre Published

Quick Read

  • Tesla Inc. (NASDAQ: TSLA) has had its share of problems this year, leading to weakening sales.

  • A new problem for Tesla is a reported flaw in its doors.

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Tesla’s Broken Doors

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Tesla Inc. (NASDAQ: TSLA | TSLA Price Prediction) has had its share of problems this year. Sales in the United States have stumbled, largely due to CEO Elon Musk’s relationship with President Trump. Its U.S. market share has dropped below 45%, according to first-half numbers. Tesla had a rush of customers in the third quarter as people bought electric vehicles (EVs) before the expiration of a $7,500 tax credit. EV sales in the U.S. are expected to nosedive this quarter and into 2026.

Tesla has posted double-digit percentage sales declines across most nations in the European Union. This appears to be due to Musk’s relationship with Trump and his comments about European political candidates.

In China, the world’s largest EV market, local competition, led by EV giant BYD, has had an impact on Tesla’s market share.

Tesla’s launch of robotic and advanced AI products, which Musk says are the future of the company, is far into the future.

Even with all these problems, Tesla’s stock has rebounded from the start of the year. It began 2025 at about $400 per share. That dropped to $220 in March and April but has rebounded since to $458. That 13% increase for the year compares to an 18% gain for the S&P 500.

Tesla’s New Problem

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Now, a widely reported flaw in its cars is a new problem for Tesla. The National Highway Traffic Safety Administration has begun an investigation into whether its door handles have trouble opening when batteries are not charged. This affects both the opening and closing of the doors. Its popular Model Y seems to be the primary target, according to the NHTSA. One report cited a parent exiting the vehicle after a drive to remove a child from the back seat. The door did not open, and the parent was unable to reenter the vehicle.

The part about a child is likely to get extra attention.

In addition to the 2021 Model Y, the letter covers “2017-2022 Model 3 sedans, as well as 2020 and 2022 Model Y sport utility vehicles,” according to Bloomberg. The news agency also pointed out that Tesla has until December 10 to respond to the letter about the door problem.

No car company likes a car-quality investigation. Tesla already faces weakening U.S. EV sales this quarter. It does not need additional problems.

Tesla Stock Price Prediction and Forecast 2025–2030

 

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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