Tesla recalls 53,000 cars for faulty parking brake

Company News | Business | Markets 4/20/2017, 8:10 PM
Tesla recalls 53,000 cars for faulty parking brake

A third-party supplier may have manufactured a small gear improperly, electric vehicle maker and renewable power developer Tesla Inc. said on Thursday and announced it is recalling 53,000 Model S and Model X units. If the part becomes damaged, it may prevent the parking brake from releasing, as it would be stuck in place, though there have been no reports the system ever failed "to hold a parked vehicle or failing to stop a vehicle in an emergency as a result of this condition, and this part has no impact on the car’s regular braking systems," the safety update notes. Shares of the largest auto manufacturer in the United States declined to as low as $300.23 at the Nasdaq, and subsequently pared most of the loss to trade 0.33% in the red at $304.5.

Tesla said it didn't register any related accidents or injuries and added less than 5% of the cars being recalled could be affected. Both brakes can be replaced in less than 45 minutes, while the operation should be complete by October, the statement adds. The vehicles in question were produced between February and October of last year. 

TeleTrader Newsroom / IT



Chart for: TESLA INC. DL-,001

US Tech 100 I...+0.17%

Chart for: US Tech 100 Index

US SPX 500 In...+0.47%

Chart for: US SPX 500 Index