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HomeTop Global NewsTesla recalls more than 80,000 cars in China over software, seatbelt issues

Tesla recalls more than 80,000 cars in China over software, seatbelt issues

Tesla is recalling more than 80,000 cars in China. Investors will be watching to see if there will be any damage to the US giant’s reputation.

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Tesla The Chinese market regulator said on Friday it is recalling more than 80,000 cars in China over software and seatbelt issues.

China’s State Administration for Market Regulation said the US electric car giant is recalling a total of 67,698 imported Model S and Model X vehicles produced between September 25, 2013 and November 21, 2020.

The recall of these models is due to a software issue affecting the battery management system of the cars. Tesla will upgrade the software of these vehicles for free.

Elon Musk’s automaker is recalling 2,736 imported Model 3 vehicles produced between January 12, 2019 and November 22, 2019, as well as 10,127 of the China-made version of the car because of potentially faulty seatbelts.

The regulator said Tesla would test seatbelts on affected cars.

Tesla was not immediately available for comment when contacted by CNBC.

Investors will be watching for any fallout from Tesla’s recall in China. The market is increasingly competitive with Warren Buffett-backed domestic rivals BYD the one above likes nio And xpeng,

Bill Russo, CEO of Shanghai-based Automobility, told CNBC, “Recalls are always costly and are often escalated in a way that can be damaging to reputation — especially true now as the market has become hyper-competitive and Tesla’s backlog is shrinking.”

“This recall mostly affects imported models (S and X), so it can be managed if they get in front of it.”

China is one of Tesla’s most important markets. The company has a major production facility in Shanghai and has been selling record numbers of China-made cars in recent months.

But Tesla also faces growing competition in China in the form of companies like Xpeng, Nio and Lee Auto New car launch for 2023 to challenge US electric automaker’s dominance.

Read more about China from CNBC Pro

Last month, Tesla slashed the price of Model 3 and Model Y vehicles in China earlier this year due to higher material costs.

This isn’t the first time Tesla has had to recall cars in China. In May, the American company recalled more than 100,000 cars due to overheating problems.

— CNBC’s Sam Vadas contributed to this report.

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