Tesla Recalls Almost 90% Of Model Xs Produced Thus Far

Shares of

were trading higher by nearly 1.50 percent on Monday despite the company's announcement of a voluntary recall of 2,700 Model X SUV. Tesla notified its customers of an issue with the third row seat. Specifically, the company said that an internal seat strength test that was conducted in Europe showed that the recliner in the third row seat unexpectedly slipped. The recliner is the locking hinge that allows the third row seat to fold forward. Tesla added that if a recliner were to slip during a crash, the seat could move forward. Despite the recent flaw discovery, Tesla's tests in North America showed no signs of a failure. Moreover, there are no reports of a third row seat slipping in customer vehicles. Nevertheless, the company felt it necessary to undertake the precautionary measure and and all Model X vehicles are expected to be completed over the next 5 weeks. Tesla