Published: Fri, April 21, 2017
Economy | By Annette Adams

Tesla recalls 53000 of its Model S, Model X cars

Tesla recalls 53000 of its Model S, Model X cars

The issue affects an estimated 2% of 53,000 cars built between February and October of 2016, the company said, although all those cars are being recalled.

Tesla shares fell 1% to settle at $302.51 in NY following the recall disclosure.

A Tesla spokesperson said the suit misstated facts and that the company has consistently updated and educated drivers about Autopilot functions and limitations. Tesla said it has no impact on the regular braking systems and doesn't represent a direct risk to safety, but the vehicle could stay stuck in park if a certain part breaks.

Shares in Tesla fell by as much as 1.7% in the wake of the recall being made public, but soon partially recovered to -0.85% at time of publication.

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 and Ford.

Regular brakes aren't affected by the problem.

A unit of Italy's Brembo SpA supplied the part in question, a spokeswoman for the company confirmed. Engineers believe a small gear, perhaps improperly built by a supplier, is to blame.

Tesla delivered 76,230 S and X models in 2016. The Palo Alto-based company has set the goal of making 5,000 vehicles a week once the production on the Model 3 begins. The company services customer vehicles instead through a network of around 135 service centers and with mobile technicians who fix customer cars at their homes or workplaces.

Tesla recently discovered a potential manufacturing issue with the electric parking brakes installed on certain Model S and Model X vehicles that could prevent the parking brake from releasing.

"Service capacity will not be an issue", a Tesla spokeswoman reportedly said in an email. But due to the huge number of parts what will be needed, a total recall could take as long as October.

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