Tesla Motors Inc (TSLA) Recalls 1,228 Model S Cars

Tesla Motors Inc (NASDAQ:TSLA) has recalled around 1,228 Model S vehicles due to the problem in the bracket, which keeps the left hand back seat in its place. The announcement was made by Chairman and CEO Elon Musk on Twitter and said that the recall process will be completed by next week.

Tesla Motors Inc (TSLA) Recalls 1,228 Model S Cars

According to Elon Musk there has not been any complaints received from the customers, nor any accident has happened. He said that Tesla will take the car from the owner and then return it after a few hours.

“As designed, the striker bracket is both bonded and welded to the vehicle body, either one of which would be sufficient by itself,” Musk said today in a blog post.

Around 7,500 Tesla Model S Cars Sold:

Around 7,500 Model S cars were sold by Tesla Motors Inc (NASDAQ:TSLA) in North America for the quarter ending March 31, 2013. The automobile company produces 400 cars per week. If Tesla Motors Inc (NASDAQ:TSLA) has sold 12,000 cars since March 31.

Defect not major

The area where the fault has occurred in the car is a safe one and not a dangerous part of the car such as battery or drivetrain. The automobile companies are used to these types of recalls. The improvements that are to be made in the car will be completed by the next week.

The bracket of the Model S, which was built during the affected period, will be further strengthened. According to the company, the alterations have been made on those cars which are still in factory. This implies that only those cars that were delivered between mid May and early June need to be corrected.

Tesla New Warranty Program

Tesla Motors Inc (NASDAQ:TSLA) has made a recall for the first time since rolling out its new service and warranty program in April 2013. Under the new program, a Tesla Model S owner will get a number of facilities. For instance, he or she can take another car on loan if his car is in service. A valet service is also offered by Tesla under which a representative from the firm will come and pick up the car when it is needed for repair.

In May, Musk said that the company is in conversation with Google (NASDAQ:GOOG) to come up with an ‘autopilot’ function for some of the vehicles.

About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com