Tesla plans to add 14 Supercharger stations in Korea this year

Audrey Hill
April 22, 2017

Tesla shares have recovered from yesterday's selloff, rising 0.4% in morning trading, after the company issued a voluntary recall of 53,000 vehicles to fix a parking brake problem.

Tesla had said a year ago it would recall 2,700 Model X sport utility vehicles in the United States due to a faulty locking hinge in third-row seats.

While only a small number of cars will have the defective gears, Tesla will replace them all because it's hard to tell by looking at them whether they're bad. If the gear breaks, the parking brake could get stuck in place. "There have been no reports of the parking brake system failing to hold a parked vehicle or failing to stop a vehicle in an emergency as a result of this condition", the Tesla statement says.

Tesla said it is safe to use the vehicle while recall efforts continue. "We are able to begin replacing parts immediately and will have sufficient parts for all affected vehicles by October 2017".

Why are Teslas being recalled?

In what Tesla admits is an "overly cautious" move, the company has issued a worldwide recall for all cars manufactured in that period - 53,000 units - even though less than five per cent of them are thought to be affected. A total of 53,000 cars were produced during the time, and now, the automaker company has chose to voluntarily recall all the cars and replace the part of parking brakes.

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What effect that may have on waiting times for service calls remains to be determined. The shares were down 0.9 percent to $302.69 as of 1:56pm in NY trading. But now, it looks as if the carmaker has to deal with some production problems internally for Model S and X.

"Service capacity will not be an issue", a Tesla spokeswoman reportedly said in an email.

The company said while they haven't seen any. Although, company added that no reports of injury and accidents have been reported.

Following the announcement, Tesla fell by 1.7 percent in NY trading on Thursday.

Other reports by MaliBehiribAe

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