Tesla has reportedly recalled nearly 30,000 Model X cars in the US over an issue that prevents the front passenger air bag functioning correctly.

The news, reported by Reuters, saw shares at the electric vehicle manufacturer drop by nearly three per cent, the lowest level in nearly two years.

In a filing with US regulators, Tesla said that in certain low-speed collision events the air bag could deploy incorrectly if a young front seat passenger is unbelted and out of position, meaning a higher risk of injury.

Tesla said it was not aware of any crashes, injuries or deaths stemming from the issue and that the problem should be fixed through a software update.

The company’s founder Elon Musk recently sold $3.4 billion in Tesla shares and nearly $20 billion in stock this year.

The mass sale of stock has financed Musk’s $44 billion acquisition of social media platform Twitter.

The move comes after Twitter laid off a large number of its employees, with Musk warning that the platform could go bankrupt.

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