The company has issued a voluntary recall for 19,641 previously serviced R1S and R1T electric SUVs and pickup trucks in the United States after discovering that the rear toe link assembly may have been reassembled incorrectly during maintenance. The U.S. National Highway Traffic Safety Administration flagged the issue, warning that an improperly secured toe link could compromise rear wheel alignment and handling, increasing the risk of loss of vehicle control. Owners will be notified by mail and instructed to bring their vehicles to authorized service centers for inspection and, if necessary, replacement of the rear toe link at no cost. The recall covers vehicles serviced between March and November 2025; no crashes or injuries have been reported to date in connection with this defect.

December 2025 production figures declined to 10,974 vehicles, compared with 12,727 units built in December 2024, a 14% drop. Deliveries also fell sharply, with 9,745 customer handovers in the last month versus 14,183 a year earlier, representing a 31% decrease. The company achieved 78% year-over-year revenue growth in Q3 2025, driven largely by a surge of buyers racing to qualify for expiring federal tax incentives, but preliminary fourth-quarter results suggest this boost was temporary. With the U.S. EV tax credit lapsing in late 2025, management now faces the challenge of sustaining demand without the support of generous subsidies, while continuing to post net losses as it scales up production of planned new models rolling out in 2026.