Business Corpus: Tesla Recalls 123,000 Model S Cars Over Power Steering IssueTesla is recalling all Model S cars built before April 2016 to retrofit a power-steering component as the company caps its worst one-month performance in the stock market since December 2010. The post Tesla Recalls 123,000 Model S Cars Over Power Steering Issue appeared first on Investor's Business Daily.

[Collection]

Tesla (TSLA) is recalling all Model S cars built before April 2016 to retrofit a power-steering component as the company caps its worst one-month performance in the stock market since December 2010.

Shares of Tesla were down 3.4% after hours to around 257. Tesla managed to ride an overall market gain during the regular session Thursday and finished up 3.2% to 266.13.

The Elon Musk-led carmaker said the issue has not led to any accidents or injuries, and impacts only the flagship Model S sedan. Not affected is the Model X sport utility vehicle or the more affordable Model 3. The recall affects roughly 123,000 vehicles globally.

The carmaker said it's performing the voluntary recall after observing "excessive corrosion in the power steering bolts." The company said it occurred "only in very cold climates, particularly those that frequently use calcium or magnesium road salts," according to an email sent to impacted customers.

"Nonetheless, Tesla plans to replace all early Model S power steering bolts in all climates worldwide to account for the possibility that the vehicle may later be used in a highly corrosive environment," the electric-car maker said.

Tesla Stock Routed

Tesla stock has been routed this month as analysts and investors have questioned the company's ability to mass-manufacture its new Model 3 sedan. Bottlenecks at Tesla's battery factory and assembly plant have undermined that effort. It has limited the return on that investment and aroused concern the company may need to raise more cash.

Moody's Investors Service also downgraded Tesla's credit rating further into junk on Tuesday.

Shares fell 22% percent this month, the biggest one-month drop since the year it went public.

The company is advising Model S customers that no immediate action needs to be taken and that they may continue to drive their cars. Deliveries of the Model S began in June 2012.

"Tesla will contact you to schedule an appointment when parts are available in your region," the company said. It added the retrofit typically takes about an hour.

The post Tesla Recalls 123,000 Model S Cars Over Power Steering Issue appeared first on Investor's Business Daily.