The reason for the recall is a fault with the electric parking brakes, which Tesla sourced from a third-party supplier for use in the cars. "If this gear were to break, the parking brake would continue to keep the auto from moving, but the parking brake would then be stuck in place".
Although there have been no reported accidents or injuries related to the faulty parking brake.
The recall covers about 63% of the roughly 84,000 vehicles Tesla manufactured in 2016.
A voluntary global recall has been issued by Tesla to fix problem of parking brakes in some of its cars like Model S and Model X.
The recall affects Model S and Model X cars manufactured between February 2016 and October 2016.
"We are recalling 53,000 vehicles total out of an abundance of caution", Tesla said. It admitted it is hard to tell which vehicles exactly are affected, and hence it made a decision to recall a lot more out of caution.
Tesla finished down 1% on the U.S. market, so the recall does seem to have had an effect on the company, even if only a short term one.
Some analysts have expressed skepticism about the meteoric rise in Tesla shares given that the company still sells only a fraction of cars compared with GM or Ford.
The company issued a voluntary recall for 3,000 of its Model S cars in November 2015, due to seatbelt connectivity problems.
In a statement released by the company, it said that only around 2% of the recalled vehicles were known to be affected by the brake issue. Tesla has already confirmed that the issue won't cause any danger to the safety of the occupants of the vehicle. It will take 45 minutes to replace both brakes, and the carmaker hopes to have all sufficient parts for affected vehicles replaced by October.
Elon Musk has boasted the firm's production facility for its much anticipated Model 3 will look like an "alien dreadnought".