Shares of Tesla, Inc. TSLA dipped more than 2.1% from their intraday high after the company issued a voluntary recall of its Model S hatchback and Model X crossover vehicles.
The recall relates to an issue with the models’ electric parking brakes. Apparently the Model S hatchback and Model X crossover cars have a faulty gear in these parking brakes, which can malfunction and lock the cars in “Park.”
Tesla said that the issue does not affect the vehicles’ regular brakes, and the company has not received reports of the parking brakes failing to keep the cars in place.
The recall affects approximately 53,000 vehicles, but Tesla said that it estimates only about 2-5% of these cars contain the problematic gear. The affected vehicles were built between February and October of 2016.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think. See This Ticker Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Tesla Inc. (TSLA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research