TSLA: Tesla Climbs Again Despite Regulators Launch Model Y Door Handle Probe

Sep 16 - Tesla TSLA stock inched higher Tuesday as U.S. regulators opened a new safety investigation into certain Model Y vehicles, according to a Tuesday statement from the National Highway Traffic Safety Administration.

The agency said the review covers about 174,000 Model Ys sold in 2020 and 2021. Complaints pointed to electronic door handles that may fail when the battery voltage drops. Parents in four incidents reported breaking windows to reach children stuck inside.

NHTSA said it received nine reports of inoperable doors linked to low voltage. Its Office of Defects Investigation plans to assess whether exterior electronic locks can be opened when the vehicle has no power, as no manual option exists in that situation.

The agency noted Tesla's owner's manual outlines a multi-step process to restore power and includes the location of interior release handles, though it said these may be difficult for young children to use. NHTSA added it will monitor further reports and take action as needed.

Tesla shares opened up 2.5% Tuesday, extending Monday's 4% rise after Chief Executive Elon Musk disclosed a $1 billion stock purchase.