Tesla (NASDAQ:TSLA) to Recall 53,000 Cars for Brake Failure

Tesla (NASDAQ:TSLA) to Recall 53,000 Cars for Brake Failure

Tesla (NASDAQ:TSLA) to Recall 53,000 Cars for Brake Failure


Thursday, Tesla Inc (NASDAQ:TSLA) said it will recall 53,000 of its Model S and Model X cars globally to fix a parking brake failures.

Shares of the US luxury EV (electric car) maker dropped 1.3% to 301.50 in afternoon trading following its biggest recall ever.

Tesla said that there had been no accidents or injuries due to the issue.

Tesla’s total production for Y 2016 was just 83,922 vehicles and included both Model S and Model X.

“The electric parking brakes installed on Model S and Model X vehicles built between February and October 2016 may contain a small gear that could have been manufactured improperly by our 3rd-party supplier,” Tesla said in a statement on its website.

Tesla said about 5% of the vehicles being recalled may be affected and it would take less than 45 mins to replace the brakes.

The company also said it would send an official recall notice to its customers.

Tesla’s CEO Elon Musk, had said last year it would recall 2,700 Model X sport utility vehicles in the United States due to a faulty locking hinge in 3rd-row seats.

The company said Thursday it was working with Italian supplier Freni Brembo SpA to get the replacement parts.

Brembo did not respond to a request for comment.

Symbol Last Trade Date Change Open High Low Volume
NASDAQ:TSLA 302.51 20 April 2017 -3.01 306.51 309.15 300.23 6,146,700
HeffX-LTN Analysis for TSLA: Overall Short Intermediate Long
Bullish (0.32) Neutral (0.17) Bullish (0.38) Bullish (0.42)

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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