Tesla Shares Fall After Company Recalls 53,000 Cars Over Brake Issue

By Claudia AssisMarketsMarketWatch Pulse

Tesla Inc. shares turned lower Thursday after the Silicon Valley car maker said it was recalling 53,000 Model S and Model X vehicles built between February and October of 2016 due to a potentially malfunctioning gear in the vehicles' electric parking brakes. Tesla said it has not seen any injuries or incidents relating to the problem. The vehicles being recalled may contain a small gear that may have been improperly made by a third-party supplier, the company said. If the gear were to break, the parking brake would still work, but could be stuck in place, Tesla said. The company said the defective gear may be in less than 5% of vehicles being recalled, but it put forth a broader recall "out of abundance of caution." Tesla owners affected will receive a recall notice by mail and e-mails from the company, Tesla said.

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