Tesla Recalls 53000 Model S And Model X Vehicles

Posted April 22, 2017

A defective third-party supplied part could have been "manufactured improperly" and, if the part were to break, the brake would still work but would be stuck in place.

Following the recall news, shares in Tesla dipped by 1.12 per cent.

Tesla Inc. recalled almost two-thirds of the vehicles it made a year ago to replace faulty electronic parking brakes that may not release properly, marking its second-largest recall to date.

Tesla issued a voluntary recall Thursday for 53,000 vehicles built in 2016 for a faulty parking brake that could remain engaged.

Tesla said if no reports are there for parking brake failure, then it is "safe to continue regular use of your vehicle".

Tesla calls yesterday's action a "voluntary recall", and stresses that only a small number of the 53,000 vehicles-less than 5 percent, perhaps as low as 2 percent-is likely to suffer from the problem.

In 2013, the National Highway Traffic Safety Administration, a USA federal government agency, awarded the Tesla Model S a 5-star safety rating, and said the vehicle "set a new record for the lowest likelihood of injury to occupants". It is asking them to return the cars so that the braking part can be replaced. The replacement process takes only 45 minutes, and assuming every potentially affected vehicle is brought in to Tesla, the recall process will be over by October 2017.

What effect that may have on waiting times for service calls remains to be determined.

The recall is the company's second-largest to date, according to a report by Bloomberg.

"Service capacity will not be an issue", a Tesla spokeswoman said in an email, noting that the mobile technicians will be able to handle the fix. Though investors reacted negative to the recall and lawsuit issue, they have settled down to see the stock reversing the trend on Friday's pre-market trading.

Tesla reversed gains and fell by as much as 1.7 percent. Also, in November 2015, company recalled 3,000 of its Model S cars due to seat belt connectivity problems.