Tesla’s shares dropped because of a seatbelt issue in Europe

Today the shares of an electric car developing company named Tesla and Silicon Valley darling are down several points. What is the reason for this sudden drop of shares? A single incident over a seatbelt issue in Europe and because of that the company will have to recall each and every Model S sedan they sold.

The recall list includes almost 90,000 cars. Tesla has sent an email to its loyal consumers saying that they do not know of any Model S car with similar problems, but still the recall in ongoing. The company stated in a press release that the car involved in a no injury incident.

Although this is not the first recall of the company, in 2014 the company recalled 29,000 Model S wall chargers. The owners of the Model S cars were given several options about how to fix their cars; it included company’s own service centers.

Although a question has been raised about the financial impact of the situation, but the company did not comment on that question. As far as we know Tesla has lost around three-quarters of a billion dollars in its value.

Here is a draft of the email that Tesla sent to its customers…….

We are sending you this email to inform you of a proactive action Tesla is taking to ensure your safety. Recently we have found a Model S in Europe with a front seat belt that was not properly connected to the outboard lap pretensioner. This vehicle was not involved in a crash and there were no injuries. However, in the event of a crash, a seatbelt in this condition would not provide full protection. First and foremost, we care about your safety.

This is the only customer vehicle we know of with this condition. Even though we have since inspected the seat belts in over 3,000 vehicles spanning the entire range of Model S production and found no issues, we have decided to conduct a voluntary recall as a proactive and precautionary measure to inspect all front Model S seat belts and make absolutely sure that they are properly connected. (We have no concerns regarding seat belts in the rear of Model S.)

Our records indicate you own a Model S affected by this voluntary recall. We will be sending you an official recall notice by mail, but you don’t need to wait for this notice to schedule your free inspection.

You have two options for your inspection:

1) Use our online scheduling tool to book an appointment


2) Visit a Tesla Service Center

Locate your nearest service center using the link below and call directly to book an appointment. You can email the service center team if this is more convenient for you, email addresses are listed on the Find Us page.


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