Tesla is recalling pre-April 2016 Model S vehicles to retrofit a corrosive power steering component as the company continues to experience dramatic financial downturn.
The Silicon Valley-based car company is performing a voluntary recall of the flagship over “excessive corrosion in the power steering bolts, though only in very cold climates,” according to an email customers received late Thursday. The recall comes after Tesla’s stock downgraded to near junk status.
The issue has not led to any accidents or injuries and doesn’t impact the Model X sport utility vehicle or more affordable Model 3. The recall affects 123,000 vehicles around the world — done out of precaution, Tesla said in the email.
“Nonetheless, Tesla plans to replace all early Model S power steering bolts in all climates worldwide to account for the possibility that the vehicle may later be used in a highly corrosive environment,” the automaker noted. The headwinds are getting stiffer for the beleaguered company.
Moody’s dropped Tesla’s credit rating Tuesday and changed the company’s outlook to negative as the fledgling Model 3’s production dwindles while the automaker’s financial situation grows dim. Tesla will need to raise more money in the near future to meet its cash needs, the credit rating agency claimed.
Elon Musk’s electric car company initially planned to produce 5,000 Model 3 sedans a week by the end of 2017, but that number was quickly revised as the inexpensive vehicle’s production began faltering.
Tesla is currently making only 975 Model 3s a week — well short of the 2,500-unit rate target by the end of this quarter. Concern is growing over the Silicon Valley company’s poor production performance.
It managed to build a mere 260 Model 3s between July and September of 2017. That number is well below the 1,500 Tesla promised before the end of the fourth quarter of said year. Total orders for the wallet-friendly vehicle tumbled from a high of 518,000 to 455,000.
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