Amazon (AMZN) self-driving unit Zoox is recalling 332 vehicles in the U.S. after a software issue surfaced during testing, according to the National Highway Traffic Safety Administration (NHTSA). The regulator said the issue has occurred more than once and could raise the risk of a crash in certain situations.
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Zoox Recalls Vehicles with Older Software
NHTSA said the recall covers vehicles running automated driving system software released before December 19. At or near intersections, the vehicles may cross the yellow center line or drive into or stop in front of oncoming traffic, which increases crash risk.
Zoox said the issue has already been fixed with a software update, provided free of charge. The company added that the update improves how vehicles stay within their lane and respond to traffic near intersections.
Recall Follows Earlier Software Update
This is not the first time Zoox has issued a software-related recall. In May, the company recalled 270 vehicles following a crash in San Francisco. That update focused on improving how vehicles track nearby pedestrians and prevent movement when someone is close.
Such actions are common in self-driving programs that are still in testing.
For Amazon, Zoox remains a long-term project and a small part of the broader business. The recall does not affect Amazon’s retail operations or its cloud unit, Amazon Web Services. Still, safety-related headlines around autonomous driving tend to draw attention, even when the direct financial impact is limited.
Is AMZN Stock a Buy?
AMZN has a consensus Strong Buy rating among 45 Wall Street analysts. That rating is based on 44 Buy and one Hold recommendations issued in the last three months. The average price target on AMZN stock of $296.12 implies 29.6% upside from current levels.
