Tesla Recalls 53,000 Cars to Replace Faulty Parking Brakes
Tesla Inc. recalled 53,000 Model S and Model X vehicles to replace faulty electronic parking brakes that may not release properly.
Vehicles assembled between February and October last year contain a small gear that could have been manufactured improperly by Tesla’s supplier, according to a statement on the electric-car maker’s website. If that gear were to break, the parking brake could become stuck in place, the company said.
“While less than 5% of the vehicles being recalled may be affected by this issue, we are recalling 53,000 vehicles total out of an abundance of caution,” Tesla said. “Because of the design of the gear, it is difficult to tell exactly which vehicles are affected.
Tesla reversed gains and fell by as much as 1.7%. The shares were down 0.9% to $302.69 as of 1:56 p.m. in New York trading.
The automaker led by Chief Executive Officer Elon Musk is under closer scrutiny with regards to quality as its market capitalization has surged to rival the likes of much bigger companies including General Motors Co. and Ford Motor Co. Tesla’s valuation has been climbing in part due to the upcoming introduction of its most affordable car, the Model 3, which will require manufacturing at much greater scale.
Tesla said it hasn’t seen “a single accident or injury” relating to the brake issue, and there have been no reports of the system failing to hold a parked vehicle or stop a vehicle in an emergency. Only a “very small percentage” of gears were manufactured improperly, the company said.