This article first appeared on GuruFocus.
Tesla Inc. (TSLA, Financials) is recalling nearly 13,000 vehicles in the United States after discovering a problem that could cause cars to lose power unexpectedly, according to federal safety regulators.
The National Highway Traffic Safety Administration said Wednesday that the issue involves a battery connection failure that may interrupt power delivery to the vehicle’s systems, creating a potential safety risk. Tesla reported the defect to regulators and will update or replace the affected components at no cost to owners.
So far, the firm hasn’t said that any crashes or injuries have happened because of the problem. Tesla has made a number of safety improvements this year, including changes to the software that controls the brakes and seat belts.
U.S. officials have been looking more closely at Tesla’s vehicle software and driver-assistance systems. The most recent recall comes just days before the business is expected to report its third-quarter earnings. Investors will be hoping for news about production trends and development in its next-generation battery program.
Tesla said it will contact impacted drivers immediately and start fixes in the next several weeks for Tesla owners.
