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Tesla Motors, Inc. Voluntarily Recalls Model X: What Investors Need to Know

The company said it has not received any reports about this issue and it only discovered a potential problem during additional European seat strength tests prior to selling the Model X outside North America.

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It marks the first recall for the Model X, which joined the Model S sedan in Tesla showrooms in September after being beset by manufacturing glitches with its upward-opening falcon-wing doors and independently moving second-row seats.

The issue is rooted in a defective locking hinge which can potentially cause the Model X third-row seats to collapse forward in case of a crash. The installation of the replacement seat will happen over the next five weeks. Barclays analyst Brian Johnson expects Tesla could need upwards of $3 billion in excess cash to expand capacity and meet larger-than-expected demand for the lower-cost Model 3. All affected Model X customers should get a call from their service center to schedule a fix as soon as the replacement seat backs are available.

During the test, “the recliner in a third row Model X seat unexpectedly slipped”, Tesa wrote in its email to affected customers.

The automaker says a remedy for the problem is already in place since the supplier, Futuris Group, created a new improved locking hinge design.

“We are emailing to inform you of a proactive action Tesla is taking to ensure your safety as a Model X owner”, the email said in part. The recliner is produced by an outside supplier, and Tesla insists that those with an affected vehicle shouldn’t have anyone sit in the back of the vehicle until it can be repaired.

The issue was found when Tesla was conducting “strength tests” on the seats. It’s jumped on the issue, stating that it’s been addressed and any Model X’s built after March 26 are unaffected.

The recall will be paid for by Futuris Group, which made the seats.

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Multiple media outlets reported Tuesday that Tesla has given its Model S everything from a facelift to new hardware and even a couple of more efficient features.

Tesla Model 3 is under pressure as Model X recalls raises many questions