Tesla Inc (NASDAQ:TSLA) has recalled almost 6,000 Model 3 and Model Y vehicles in the U.S. According to Reuters, the automaker warned in official documents that some brake caliper bolts could be loose, causing a loss of pressure. Q1 2021 hedge fund letters, conferences and more Details on Tesla’s latest recall Tesla recalled certain Model […]
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June
2, 2021
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This story originally appeared on ValueWalk
Tesla Inc (NASDAQ:TSLA) has recalled almost 6,000 Model 3 and Model Y vehicles in the U.S. According to Reuters, the automaker warned in official documents that some brake caliper bolts could be loose, causing a loss of pressure.
Q1 2021 hedge fund letters, conferences and more
Details on Tesla’s latest recall
Tesla recalled certain Model 3 cars manufactured between 2019 and 2021 and certain Model Y SUVs produced between 2020 and 2021. The automaker’s filing with the National Highway Traffic Safety Administration reported no injuries or accidents due to the issue. It also said Tesla would inspect and replace or tighten the caliper bolts as needed.
The automaker reported that when the bolts loosen, they may let the brake caliper separate and come into contact with the rim of the wheel. A loss of tire pressure could result in “very rare circumstances.” Tesla also said that in the “unlikely event” that one of its vehicles is damaged by a missing or loose bolt, it would arrange for the car to be towed to the closest service center for repair.
In the filing, Tesla said it learned in December of a field incident that involved a 2021 Model Y with a missing bolt on the brake caliper on the rear brake on the driver’s side. According to Electrek, the automaker is informing owners of the recall of the affected vehicles in an email and advising them to make an appointment with the nearest service center for their brake caliper bolts to be inspected.
Musk in trouble for tweeting again
In other Tesla news, the Securities and Exchange Commission said the automaker has failed to regulate CEO Elon Musk’s tweets despite the court order that required it to do so. According to The Wall Street Journal, securities regulators told Tesla last year that Musk’s tweets violated the court order that company lawyers must approve them before they are posted. The newspaper cited a letter sent by the SEC to Tesla in May 2020, which was uncovered via a Freedom of Information Act request.
The SEC and Tesla settled an enforcement action in 2018 in which regulators alleged that Musk committed fraud by tweeting that the automaker could be bought out. Musk and Tesla each aid $20 million to settle the action and agreed to have lawyers oversee his social media posts.
The SEC sent correspondence to Tesla in 2019 and 2020 stating that tweets Musk had posted about the company’s solar roof production volumes and its stock price hadn’t been preapproved by Tesla’s lawyers. The documents haven’t been reported before, and regulators haven’t done anything about Tesla’s and Musk’s repeated violation of the court order as part of the settlement.
Tesla is part of the Entrepreneur Index, which tracks 60 of the largest publicly traded companies managed by their founders or their founders’ families.