Tesla is recalling more than 80,000 vehicles manufactured in China and imported vehicles dating back to at least 2013 due to software and seat belt concerns. This is a statement issued by the Chinese market regulator on Friday, Nov. 25, CNBC reported.
Cars to Recall
China's State Administration for Market Regulation said that the American electric car company would recall a total of 67,698 imported Model S and Model X cars produced between Sept. 25, 2013, and Nov. 21, 2020.
Because of a software glitch that affects the automobiles' battery management systems, these models are being recalled as a precautionary measure. Tesla will provide these cars with a free software update.
Additionally, Elon Musk's carmaker would recall 10,127 of the China-made Model 3 and 2,736 imported Model 3 cars built between Jan. 12, 2019, and November 22, 2019, all of which may have defective seatbelts.
The regulator said that Tesla would assess the seatbelts in the affected vehicles.
Competition in China
Investors will closely monitor Tesla's performance in China once the recall is announced. With local competitors like Warren Buffett's BYD and newcomers like Nio and Xpeng entering the market, competition is getting intense.
"Recalls are always costly and often get amplified in a way that can be reputationally damaging," Bill Russo, CEO of Shanghai-based Automobility, told CNBC.
He added that this is particularly true since the market has become hyper-competitive and Tesla's backlog has been diminishing.
"This recall mostly impacts imported models (S and X), so it can be managed if they get out in front of it.'
Tesla has identified China as one of its most critical markets. The company has been breaking records for the number of automobiles produced in China over the last several months, and one of its primary manufacturing facilities is located in Shanghai.
But Tesla is also facing increasing competition in China, where businesses such as Xpeng, Nio, and Li Auto are gearing up to deliver new cars in 2023 in an effort to threaten the dominant position held by the American electric carmaker.
After increasing the prices of its Model 3 and Model Y cars in China earlier this year owing to higher material costs, Tesla decreased the prices of these models in China one month ago.
Not the First
This is not the first time Tesla has been forced to recall vehicles due to safety concerns in China.
Because of a problem with the vehicles overheating, the American company had to recall more than 100,000 vehicles in May.
The electric vehicle manufacturer elaborated that the trouble begins when drivers prepare their battery pack for Supercharging or use EV charging infrastructure.
Tesla also said that a lagging center screen issue might impair gear selection, rearview camera image, warning lights, and windshield visibility settings.
This article is owned by Tech Times
Written by Trisha Kae Andrada
