Tesla Under Scrutiny Due to Model 3 Door Release Concerns

Tesla, Inc. TSLA is under scrutiny after the U.S. auto safety regulator launched a defect investigation into Model 3 compact sedans, citing concerns that emergency door release controls may be difficult to access or identify in critical situations.Per the National Highway Traffic Safety Administration (NHTSA), the probe covers about 179,071 model year 2022 vehicles. It was initiated on Dec. 23 following a defect petition alleging that the mechanical door release is concealed, unlabeled and not intuitive to locate during emergencies.The automaker primarily uses electronic door latches that operate via buttons instead of conventional mechanical handles. Although the vehicles are equipped with manual door releases for emergencies or power outages, safety experts have long warned that these releases are not consistently visible, clearly labeled or easy to find, especially for rear-seat passengers.Opening a defect investigation does not automatically result in a recall, but it represents the first stage of a regulatory review that could lead to further action if a safety-related defect is identified.This marks the second probe this year into Tesla’s door handles. In September, the NHTSA opened an investigation into the 2021 Model Y SUV, affecting roughly 174,000 vehicles, after reports that parents were unable to open the electric doors to reach their children following drives. In four cases, parents reportedly broke the vehicle’s windows to rescue their children.Tesla’s Zacks Rank & Key PicksTSLA carries a Zacks Rank #3 (Hold) at present.Some better-ranked stocks in the auto space are General Motors Company GM, OPENLANE, Inc. KAR and Garrett Motion Inc. GTX, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for GM’s 2025 and 2026 EPS has improved 8 cents and 47 cents, respectively, in the past 30 days.The Zacks Consensus Estimate for KAR’s 2025 sales and earnings implies year-over-year growth of 9.4% and 48.2%, respectively. EPS estimates for 2025 have improved 9 cents in the past 60 days. EPS estimates for 2026 have improved 2 cents in the past 30 days.The Zacks Consensus Estimate for GTX’s 2025 sales and earnings implies year-over-year growth of 2.6% and 17.5%, respectively. EPS estimates for 2025 have improved a penny in the past 30 days. EPS estimates for 2026 have improved 8 cents in the past 60 days. Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report OPENLANE, Inc. (KAR): Free Stock Analysis Report Garrett Motion Inc. (GTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks