Tesla Investors To Brace For Recall Of 40,000 Model 3, X EVs While Stock Already Under Pressure

Tesla Investors To Brace For Recall Of 40,000 Model 3, X EVs While Stock Already Under Pressure

Tesla, Inc. TSLA is recalling over 40,000 Model S and Model X vehicles, belonging to model years 2017-2021. The company's stock — seemingly in reaction to the news — is down sharply in the premarket session.

The electric vehicle maker notified the National Highway Traffic Safety Administration about the recall on Nov. 1 and the recall has been initiated by the company due to issues with the electronic power assist steering, or EPAS, system.

The EPAS system could experience a loss of power steering assist while driving on rough roads or after hitting a pothole. This can require greater steering effort, especially at low speeds, increasing the risk of a crash.

Tesla has released an over-the-air software update to recalibrate the EPAS system, free of charge, the NHTSA said in the letter communicating the recall.

The company said in the NHTSA filing that it has identified 314 vehicle alerts for this condition among U.S. vehicles as of Nov. 1, although it is not aware of any injuries or deaths related to the condition.

Price Action: In premarket trading on Tuesday, Tesla shares fell 1.5% to $194.05, according to Benzinga Pro data. The stock had closed 5% lower in the regular session on Monday.

See also: As Tesla Shares Drop Below $200, Analyst Suggests A Fix — It Has Nothing To Do With The EV Maker

 

 

 

Posted In: electric vehiclesNational Highway Traffic Safety AdministrationGovernmentNewsRegulationsTech