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Tesla shares close lower on Wednesday, 6,000 US vehicles to be recalled due to loose bolts issue

Tesla Inc (TSLA) will recall almost 6,000 vehicles in the United States due to an issue involving loose brake caliper bolts, a company filing with the National Highway Traffic Safety Administration (NHTSA) showed.

Loose caliper bolts could allow the brake caliper to separate and come in contact with the wheel rim, which could result in a loss of tire pressure in “very rare circumstances,” the filing showed.

The company said that in case there was vehicle damage from a loose or missing fastener, it would arrange for a tow to the closest service center for repair.

The recall is to affect particular 2019-2021 Model 3 vehicles and 2020-2021 Model Y vehicles, the auto maker said.

Tesla also said that it was not aware of any crashes or injuries associated with the issue.

Tesla shares closed lower for a third consecutive trading session on NASDAQ on Wednesday. It has also been the steepest single-session loss since May 13th. The stock went down 3.01% ($18.78) to $605.12, after touching an intraday low at $599.14, or a price level not seen since May 25th ($595.88).

Shares of Tesla Inc have retreated 14.25% so far in 2021 compared with a 12.04% gain for the benchmark index, S&P 500 (SPX).

In 2020, Tesla Inc’s stock went up 743.40%, thus, it outperformed the S&P 500, which registered a 16.26% gain.

Analyst stock price forecast and recommendation

According to TipRanks, at least 10 out of 25 surveyed investment analysts had rated Tesla Inc’s stock as “Buy”, while 8 – as “Hold”. The median price target on the stock stands at $645.88.

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