Tesla Tumbles After-Hours On Massive Model S Recall

Sometimes it's just not your week.

On top of crashed cars, autonomous vehicle fatalities, production targets plunging, and ratings downgrades, Elon Musk's car-making company is tumbling after-hours following reports of the recall of 123,000 Model S Sedans.

AP reports  that Tesla is recalling 123,000 sedans worldwide to fix a problem with the power-assisted steering.

The recall covers all Model S sedans built before April of 2016.

Three bolts holding the power steering motor in place can corrode and either come loose or break, possibly causing a loss of power steering. Manual steering would still work.

Tesla says the problem happens infrequently in places where salt is used to clear snow and ice from roads. It's recalling all the cars even in warm-weather states just in case.

No crashes or injuries have been reported.

Service centers will replace the bolts with ones that are more corrosion-resistant. Owners will be notified Thursday by email. Tesla says replacement parts will be available first in cold-weather areas, then in warmer climates.

And the reaction is clear after-hours...

 

As the company's stock gives up all of today's day-session gains and reverts back towards the bond-market's view...

 

Stormier weather in Muskville...