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Brake issue brings Tesla’s recent rise to a halt

Tesla has recalled nearly two-thirds of the vehicles it made last year due to faulty electronic parking brakes
Tesla car and showroom
The recall covers roughly 63% of the 84,000 vehicles Tesla made in 2016

Tesla Inc (NASDAQ:TSLA) has recalled more than 50,000 of its Model S and Model X cars after a fault was found with one of the braking systems used in both vehicles.

The recall affects a total of 53,000 vehicles sold around the world which were assembled between February and October last year are affected.

That’s almost two-thirds of Tesla’s total production in 2016.

The US electric car giant apologised to owners and explained that the fault can cause the parking brake to lock and stop vehicles from moving.

Tesla wants to inspect all of the cars, but estimates that less than 5% of those recalled may have issues.

Vehicle recalls usually lead to concerns over safety, but the California-based group played down any suggestions that the issue could lead to an accident of any kind.

“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, and this part has no impact on the car’s regular braking systems.

“We do not believe this issue could ever lead to a safety concern for our customers, and we have not seen a single accident or injury relating to it.”

Share price surge

Tesla’s latest car, the Model 3, is due to start rolling off the production lines in July and has been billed as one of the most highly anticipated car launches for years.

The Model 3, which the firm says is its most affordable car, has helped to fuel a recent surge in the electric vehicle maker’s stock price, with Tesla now rivalling the likes of General Motors and Ford in terms of valuation.

That run came to an end on Thursday though once word of the recall got out.

Shares slipped almost 2% yesterday afternoon and edged slightly lower in pre-market trading on Friday to US$302.

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