Tesla Recalls 53,000 Model S and X Vehicles for Brake ‘Issues’

Investor’s Business Daily

April 21, 2017

Electric car maker Tesla (TSLA) is voluntarily recalling 53,000 Model S and X vehicles after recently discovering “manufacturing issues” related to its electric parking brakes.

The recall applies to vehicles built in 2016, between February and October.

In an email sent to Tesla owners, the carmaker said parking brakes could be prevented from releasing but added, “We don’t believe this issue could ever lead to a safety concern for our customers, and we have not seen a single accident or injury relating to it,” as reported by Electrek.

“In order to be overly cautious, we are going to be proactively replacing these parts to ensure that no issues arise,” said Tesla, according to the report.

Tesla stock fell 1% to 302.51 in the stock market today.

The part in question is “a small gear” manufactured by a third-party supplier, Electrek said. Tesla believes the gear could have been “improperly manufactured” in less than 5% of the estimated 53,000 cars in question. Tesla said it has no impact on the regular braking systems and doesn’t represent a direct risk to safety, but the car could stay stuck in park if a certain part breaks.

The issue was discovered after Tesla learned that some owners had received alerts to have their parking brakes serviced, says a report from Jalopnik. An internal investigation was launched and Tesla discovered the problem. Tesla said there has been no reports of the parking brake system failing but decided to proactively change the parts.

The recall report comes as Tesla is gearing up to manufacturer the Model S, with production expected to begin in July.

A recent report by Morgan Stanley last month said to look for safety features to be the “ah-ha” moment for the Model 3. The upcoming Tesla Model 3 “is likely to have a level of safety that could significantly lead all other cars on sale today,” said the report authored by Adam Jonas. If Tesla achieves its goal, he wrote, the Model 3 could be “an order of magnitude safer than the average car on the road.”

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