Tesla is recalling 20,349 Model 3 and Model Y vehicles in the United States. The National Highway Traffic Safety Administration (NHTSA) announced the recall on August 11, 2026. Excessively bright low-beam headlights may impair oncoming driver visibility and increase crash risks.
Regulators have not yet finalized a remedy for the headlight issue. This action adds to regulatory pressure as the NHTSA continues an investigation into reported suspension failures in 1.2 million other Tesla vehicles.
Separately, Jefferies lowered its price target on Tesla stock to $350 from $400. The firm also trimmed its 2026 EBIT forecast, citing weaker near-term operating leverage.