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Tesla (TSLA) Recalls More Than 9,500 SUVs on Safety Concerns

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Tesla Inc. (TSLA - Free Report) has filed a safety recall for more than 9500 Model X and Y SUVs in the United States with the National Highway Traffic Safety Administration (NHTSA) due to manufacturing defects.

Reportedly, the company has recalled 9,136 Model X SUVs built in 2015 and 2016 over chunks of the body that could get disconnected while driving due to the absence of primer and 437 Model Y SUVs over a possibly loose bolt that could cause separation of the upper control arm from the steering knuckle.

Per the company, no accidents have been reported yet due to the manufacturing issues.

In Model X, the car is equipped with a front and spine applique, both of which are cosmetic in nature. Both appliques are fixed to the vehicle using urethane. If the applique-to-urethane interface lacks primer, then there is a fear that the applique would get disconnected from the vehicle .This could result in the trim on the roof of the vehicle to fall off while driving at high speeds and become hazardous for other vehicles. The issue was detected by the red-hot electric maker (EV) after the pieces were found missing on few Model X SUVs.
An investigation was initiated on Sep 21, when Tesla’s Field Quality team became aware of an event involving a 2016 Model X with a missing applique. On Oct 28, the company discovered that the failed components did not have sufficient primer at the urethane-to-applique interface, resulting in the separation of the applique. The Field Quality team then started a review of production records and supplier process information for proof on the application of primer. On Nov 10, Tesla concluded that a defect exists for certain Model Xs. The company will apply a retention test to the potentially affected cars, and reapply primers and adhesives such that the applique attaches securely.

Tesla estimates Model X SUVs produced between Sep 17, 2015, and Jul 31, 2016, to have been affected by this inadequacy. Owners of the defected vehicles will be contacted by the company to bring in their vehicles for service.

This is not the first incident where roof attachments have created hindrances for Tesla. There was a recent incident where a Model Y had its entire roof came off due to lack of applied seal.

The second, smaller recall for Model Y from the 2020 year consists of bolts which might not have been tightly secured in the vehicle. This could result in a serious threat of the upper control arm getting detached from the steering knuckle, impacting the driver’s ability to steer the car.
On Nov 1, the Field Quality team became aware of two vehicle repairs where the upper control arm had detached from the steering knuckle. The repairs were reviewed and an investigation into the primary cause was initiated, during which a third vehicle repair was recognized. On Nov 10, Tesla determined that a safety-related defect exists.

In order to repair the situation, Tesla made certain changes to its production process. The affected Model Y owners are being notified about the malfunction.

The California-based automaker previously recalled 123,000 cars from its Model S fleet due to a power steering problem.

Tesla is the market leader in battery-powered electric car sales in the United States. Other renowned automakers making aggressive efforts toward an electrified future are General Motors (GM - Free Report) , Ford (F - Free Report) and NIO Inc. (NIO - Free Report) .

Tesla currently carries a Zacks Rank of 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Notably, shares of the company have soared 586%, year to date, compared with its industry’s rally of 209.4%.

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