On Wednesday, the National Highway Traffic Safety Administration said that the recall includes its Model S and Model 3 cars. 356,309 Model 3s (2017-2020) and 119,000 Model S sedans (2014 - 2021) are affected by this recall.
Model 3 has issues with its trunk, whereas Model S has a latching problem in its front trunk.
The news has hurt Tesla stock since it broke. Tesla stock has had a great run this year, increasing over 50%, making its CEO Elon Musk the richest man on earth.
On the other hand, Musk has been dominating headlines ever since he 'twitter-pledged' to sell 10% of his Tesla stake.
He has sold about $16.4 billion worth of Tesla stock since November.