Per Reuters, Tesla Inc. (NASDAQ:TSLA) reported to recall 11,000 units of its Model X sport utility vehicles, globally . The vehicles to be recalled have a defective rear seat locking system that increases chances of the seats falling forward during a crash, thus putting the passengers in serious peril.
The recalled Model X vehicles were manufactured between Oct 28, 2016 and Aug 16, 2017.
Per Tesla, nearly 3% of the total units recalled has a faulty lock issue.
Tesla Inc. Price and Consensus
The company will mail their customers, who own the affected Model X vehicles and will also arrange for a much-needed service session. Good news is that fixing the issue will be hassle-free as no additional parts will be fitted in. Only a few cables in the second row fold-flat seats require to be adjusted.
Earlier in April, Tesla had recalled roughly 53,000 2016 Model S and Model X vehicles due to a fault in the parking brake.
Shares of Tesla have surged 66.4% year to date, substantially outperforming the industry’s 26.3% rally.
Zacks Rank & Key Picks
Tesla carries a Zacks Rank #3 (Hold). Some better-ranked auto stocks are Adient PLC (NYSE:ADNT), Cummins Inc. (NYSE:CMI) and Daimler AG (OTCMKTS:DDAIF), each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Adient has an expected long-term earnings growth rate of 10.6%.
Cummins has an expected long-term earnings growth rate of 12%.
Daimler has an expected long-term earnings growth rate of 2.8%.
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