Tesla is recalling more than 80,000 cars in China due to software and seatbelt issues, the China Market Regulatory Authority spokesman said Friday.
China’s State Administration for Market Regulation announced that the U.S. electric car giant is recalling 67,698 imported Tesla models built between September 25, 2013, and November 21, 2020.
The recall of this model is due to a software issue that affects the ability of your car battery to manage power. Tesla will be upgrading the software in these vehicles for free.
Elon Musk’s automaker has recalled 2,736 imported Model 3 cars from January 12 to November 22, as well as 10,127 of the China-made versions. The company announced that the recall is due to faulty seatbelts.
Tesla will make sure that the seatbelts on the affected cars are in working order, according to the regulator.
Tesla has faced backlash from China’s internet community for the recall. Investors are worried about the fallout for Tesla in China after this recall, especially since the market is increasingly competitive thanks to domestic challengers Warren Buffett-backed BYD and nóveau entrants Nio and Xpeng.
“The intensity of recalls has increased,” Shanghai-based Automobility CEO Bill Russo said. “Recalls are always costly and often get amplified in a way that can be reputationally damaging.” But in the case of Tesla, their backlog at this point is shrinking, which will make their ability to fix issues quicker.
“This recall mostly impacts imported models (S and X), so it can be easily managed if they get out in front of it. “
China is a top priority for Tesla, and the automaker has plans to open its first factory there. The company has also had significant success in recent months with sales of China-made cars.
Tesla competes with homegrown companies like Xpeng, Nio, and Li Auto.
We’re ramping up to release cars in 2023, which will challenge the dominance of American electric vehicle makers.
Tesla, the company known for making electric cars, raised the price of their most popular models earlier this year because of higher material costs. They recently dropped the prices again because they’ve been trying to get new customers in China.
This isn’t the first time Tesla has had to recall cars in China. The company encountered more than 100,000 issues in May because of an overheating problem.
