Ford halts deliveries of electric Mustang Mach-E SUV over safety defect that could affect nearly 49,000 vehicles

• Ford is recalling nearly 49,000 Mustang Mach-E SUVs in the US.
• The electric vehicles could lose power due to a potential defect.

Ford is recalling tens of thousands of electric Mustang Mach-E SUVs and instructing dealers to stop delivering the model until a potential safety defect is resolved, a company spokesperson confirmed to Insider.

CNBC first reported the news on Tuesday, citing a notice Ford sent to its dealers on Monday. The safety issue comes as Ford works furiously to ramp up production of electric vehicles and catch up to Tesla.

According to Ford, DC fast charging and repeated instances of intense acceleration can cause a component in the high-voltage battery system to overheat. Over time, this could cause a loss of power, which could elevate the risk of an accident, Ford said.

The potential defect impacts 48,924 Mustang Mach-E SUVs in the US.

Ford expects to send out an over-the-air software update to remedy the issue by July. In the meantime, it has told its dealers they can still sell Mach-Es but can't hand over SUVs to customers until the update occurs, the spokesperson said.

The Detroit automaker and others are in the midst of a massive transition away from fossil fuels and toward clean, battery-powered vehicles. The shift hasn't come without its stumbles.

Last year, General Motors recalled every Chevrolet Bolt EV after reports of battery fires and halted production of the model. Hyundai faced a similar issue, recalling electric models over fire risks. There is no evidence that fires are more likely in electric cars versus gas vehicles.