Tesla To Recall More Than 54,000 Model X Vehicles

By
Fatima Attarwala
Fatima Attarwala
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Fatima Attarwala is a business news writer and editor with a decade of experience researching, analyzing, and commenting on issues influencing the economy.
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Published October 17, 2023
Tesla Model X

San Francisco Chronicle/Hearst Newspapers / Contributor / Getty Images

Key Takeaways

  • Tesla will recall 54,676 Model X vehicles made between 2021 and 2023.
  • The models will be recalled for reported failures to detect and display a warning light for low brake-fluid levels.
  • The electric vehicle (EV) maker issued a free over-the-air software update for the problem.
  • Tesla shares slid in early trading on Tuesday following the news, before rebounding later in the session.

Tesla (TSLA) shares dipped in early trading on Tuesday before rebounding later in the session after the National Highway and Traffic Safety Administration (NHTSA) said the electric vehicle (EV) maker will recall certain 2021-2023 Model X vehicles.

The vehicles' controllers may not properly detect low brake-fluid levels, potentially leading to a failure to display a warning light, according to NHSTA. Tesla has issued a free over-the-air (OTA) software update to address the potential safety issue and said owners will receive notification letters by Dec. 12, 2023. The NHSTA said Tesla wasn't aware of any related crashes, injuries, or deaths, as of Oct. 10.

Earlier this year, the EV maker had to recall 362,758 Model X, Model S, and Model Y vehicles because of reported issues related to its experimental driver-assistance software. The Full Self-Driving Beta system raised safety concerns related to navigating intersections and had trouble responding appropriately to required changes in speed limits. In this case, Tesla released a free over-the-air software update as well.

Tesla will post its third-quarter results on Wednesday after the closing bell. The EV maker slashed prices in the third quarter, which could put pressure on its gross margins. Planned factory shutdowns for an upgrade also led to a decline in production and delivery volumes in the most recent quarter.

Shares of Tesla were 0.8% higher as of 12:30 p.m. ET on Tuesday and have more than doubled year-to-date.

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Article Sources
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  1. National Highway and Traffic Safety Administration. “Failure To Detect Low Brake Fluid/FMVSS 135.”

  2. National Highway and Traffic Safety Administration. “Part 573 Safety Recall Report 23V-679.”

  3. National Highway Traffic Safety Administration. "Full Self-Driving Software May Cause Crash."

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