Tesla Inc said on April 20 it would recall 53,000 of its Model S and Model X cars globally to fix a parking brake issue.
Tesla shares fell 1.1 percent to $302.24 in midday trade, giving it a market capitalization of about $50.1 billion, around $1.2 billion below that of GM's.
Electric auto maker Tesla (TSLA) is voluntarily recalling 53,000 Model S and X vehicles after recently discovering "manufacturing issues" related to its electric parking brakes.
The company will send an official notice to the customers with information about how the parking brake can be replaced or fixed.
USA carmaker Tesla Motors has recalled 53,000 of its Model S and Model X vehicles after it found issues related to the cars' braking systems.
Tesla said if no reports are there for parking brake failure, then it is "safe to continue regular use of your vehicle". The carmaker believes that only a small percentage of the 53,000 cars recalled will be at risk due to the braking part, but it recalls all the vehicles, ensuring that there is no issue in the future. If that gear were to break, the parking brake could become stuck in place, the company said. It expects to have sufficient parts for all of the affected vehicles by October.
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Of the 84,000 vehicles Tesla manufactured in 2016, the recalls accounts for roughly 63 per cent. They accused the company of selling them cars with "Enhanced Autopilot" technology, knowing fully well that it was not functional and also lacked standard safety features.
What effect that may have on waiting times for service calls remains to be determined. No injuries have been reported from the malfunction.
According to the Tesla executive, one supercharger station will be able to handle six to eight vehicles at once.
"Service capacity will not be an issue", a Tesla spokeswoman said in an email, noting that the mobile technicians will be able to handle the fix.
Following the announcement, Tesla fell by 1.7 percent in NY trading on Thursday.