On Thursday, the electric car making giant – Tesla Motors – announced that it is recalling 11K Model X SUVs because their rear seats might not lock into place in a crash. According to the U.S.-based automaker, this issue is affecting around 3% of the car included in the retail. But it does not really affect the breakout potential in October, here’s why –

Stock’s short squeeze potential could be something to witness

The short-sellers have said that currently, the shares of the electric car making giant are overpriced and if what they say is true, then the short-squeeze potential of the stock could be something to observe. In addition to this, the report by news site TechCrunch notes that the people who are driving a Model X are not in the most danger, instead Tesla short sellers should be most worried.

The reason behind the recall was the rear seat. The U.S.-based automaker said that some cables in the rear seat may have been tightened improperly that is preventing the left seat from locking in an upright position. The seat could move forward during a crash if it is not locked properly.

In a statement to CNBC, the automaker said, “During recent internal testing, Tesla determined that a small number of cables in the second row fold-flat seats in some 2016 and 2017 Model X vehicles may need to be adjusted. Although Tesla has not received reports of any issues or accidents relating to this condition, we will be conducting a voluntary recall to inspect the affected vehicles and confirm whether any adjustment is needed.”

What Tesla is doing for the recall?

The automaker said that it can address all the required repairs through its mobile repair service. The owners of the Model X can stake their electric vehicle to a Tesla Service Center if they want.

The U.S.-based electric carmaker is quite tame when it comes to recall. The problem was seen in internal testing and the car has witnessed no visible injuries from the problem. The stock of the automaker is still one of the most-shorted stocks in the market, with over 20% of outstanding float actively shorted at last count. The short sellers are facing far more upside catalysts than downside catalysts right now due to the amazing reviews of the first Tesla Model 3 sedan and the upcoming launch of Tesla Semi truck.

The shares of the electric carmaker closed slightly higher on Thursday and was not affected much in after-hours trading.

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