Tesla Motors Inc. (TSLA) Stock Slips Slightly After Recall

Shares of Tesla Motors Inc. slipped Friday after the company announced it was conducting its largest-ever recall. It said all 90,000 of its Model S cars would be recalled, prompted by the receipt of a single report of a front seat belt being improperly connected, Bloomberg reported. The stock plunged 3.7 percent to $213.58 Friday, but recovered to close down a slight 0.81 percent to $220.01.

"This vehicle was not involved in a crash and there were no injuries," the company said in an e-mail to customers Friday, Bloomberg reported. "However, in the event of a crash, a seat belt in this condition would not provide full protection."

The company initially learned of the defect two weeks ago from a customer in Europe, and swiftly moved to inspect 3,000 vehicles and its assembly process, according to Bloomberg. Although no other issues were discovered, Tesla advised its customers to book an appointment at one of about 125 Tesla service centers worldwide for an inspection of a bolt that attaches the seat belt mechanism to the body of the car, Reuters reported. Tesla might even send service technicians to customers if necessary. The majority of the affected cars were sold in the U.S., with some in Europe and Asia.

"Our investigation was unable to reveal any root cause," the Tesla spokesman said, Reuters reported. "We are going to look at every single car. We expect the vast majority of seat belts to be fine."

Tesla has experienced recalls in the past. Last year, the company reportedly recalled 29,222 Model S sedans because of a charging defect that could have led to a fire hazard, and in 2013 it recalled 1,228 Model S sedans because of the strength of a mounting bracket affecting the second-row seat.