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Tesla 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 recalls over 80,000 vehicles in China. Investors are eyeing the US giant to see if its reputation is damaged.

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Tesla is recalling more than 80,000 vehicles in China over software and seatbelt problems, Chinese market regulators said on Friday.

The US electric car giant is recalling a total of 67,698 Model S and Model X imported vehicles produced between September 25, 2013 and November 21, 2020, according to China’s state market regulator. the bureau said.

The recall of these models is due to a software issue affecting the vehicle’s battery management system. Tesla upgrades the software on these vehicles for free.

Elon Musk’s automaker added 2,736 imported Model 3 cars produced between January 12, 2019 and November 22, 2019, as well as 10,127 of the Chinese version of the car, with seat belts. Recalling due to possible defects.

Tesla will check the seatbelts of affected vehicles, regulators said.

When contacted by CNBC, Tesla was not immediately available for comment.

Investors are watching how the recall affects Tesla in China. The market is becoming more competitive with Warren Buffett-backed domestic challengers. BYD start-ups like Nio When Xpeng.

Shanghai-based Automobility CEO Bill Russo told CNBC:

“This recall primarily affects import models (S and X), so it can be managed if they come forward.”

China is one of Tesla’s most important markets. The company, which has a major production plant in Shanghai, has sold a record number of Chinese-made vehicles in recent months.

But Tesla has Xpeng, Nio, lee auto Increase new car releases for 2023 to challenge the dominance of US electric car makers.

Read more about China on CNBC Pro

Last month, Tesla cut prices for its Model 3 and Model Y in China.

This isn’t the first time Tesla has been forced to recall a car in China. In May, the US company recalled more than 100,000 cars due to overheating problems.

— CNBC’s Sam Vadas contributed to this report.

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