Tesla shares edge down as it recalls 53,000 cars over parking brake issues

Courtney Goldsmith
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Tesla Worldwide Debut of Model X
Tesla's shares skidded after it announced the recall (Source: Getty)

Elon Musk's Tesla today announced its biggest ever recall.

The firm will recall 53,000 of its Model S and Model X cars built in 2016 over a parking brake issue.

Shares in the US car maker dipped 1.12 per cent at $302.08 on the news.

"The electric parking brakes installed on Model S and Model X vehicles built between February and October 2016 may contain a small gear that could have been manufactured improperly by our third-party supplier," Tesla said.

The car maker produced 83,922 vehicles, including the Model S and Model X, in 2016, a 64 per cent increase from 2015.

Less than 5 per cent of the recalled vehicles may be affected and it would just take around 45 minutes to replace the brakes, said Tesla, which this month became the most valuable US car company.

The company noted no accidents or injuries had occurred because of the issue, and it said it will send an official notice to customers.

Earlier this year, a US government investigation into Tesla's autopilot system following a fatal crash found the tech company gave drivers enough warning around the system and identified no defects, avoiding a recall of the Model S cars.

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