Toyota, Subaru shares fall after EV recall

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Toyota, Subaru shares fall after EV recall

Toyota Motor Corp and Subaru Corp dropped their shares on Friday after the two Japanese car makers announced recalls of their first mass-produced electric vehicles EV for the global market because of a risk the wheels could come loose.

The Toyota recall of 2,700 units of the bZ 4 X SUVs, rolled out less than two months ago in Japan, is a setback to the world's largest automaker by sales, as it seeks to take on larger EV rival Tesla Inc.

A Toyota spokeswoman said on Thursday not every model was subject to the recall but declined to say how many it has built overall.

Subaru is recalling about 2,600 units of the Solterra, its first all-electric vehicle developed with Toyota, globally.

Japan's safety regulators said sharp turns and sudden braking could cause a hub bolt to loosen, raising the risk of a wheel coming off the vehicle. It said it was not aware of any accidents caused by the defect.

Toyota's shares were down by 1.6% and Subaru's shares slumped by nearly 5%.