Tesla Issues Parking Brake Recall Affecting 53K Cars

Sorry Elon

Tesla said it would recall 53,000 of its Model S and Model X cars globally to fix a parking brake issue. The shares were down 0.9 percent to $302.69 as of 1:56pm in NY trading.

Some analysts have expressed skepticism about the meteoric rise in Tesla shares given that the company still sells only a fraction of cars compared with GM or Ford.

Because of a parking brake that might stick and render a auto immobile, Tesla Inc. has issued a voluntary recall for certain Model S and Model X luxury electric cars. The company said 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 company said it will be notifying affected owners by mail which will include information on how to have parking brakes replaced.

The recall equates to roughly two-thirds of the 84,000 vehicles Tesla manufactured past year. It admitted it is hard to tell which vehicles exactly are affected, and hence it chose to recall a lot more out of caution.

Shares of the U.S. luxury electric auto maker were down almost 1 per cent at $US302.77 in afternoon trading in NY, following its biggest ever recall. The company manufactured 83,922 of the S and X models in 2016, but the cars in question were manufactured between February 2016 and October 2016. The company plans to make 1 million Model 3's per year by 2020.

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The part in question is "a small gear" manufactured by a third-party supplier, Electrek said.

The faulty part was supplied by a unit of Italy's Brembo SpA, a spokeswoman for Brembo North America Inc. confirmed in an emailed statement.

How do customers/drivers know if their auto has been affected?

Tesla also recalled 90,000 Model S cars because of a single report of a seat belt not being properly connected in 2015, noted Bloomberg.

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

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