Tesla Registers Nearly 81,000 Model 3s in China Due to Software

Tesla Registers Nearly 81,000 Model 3s in China Due to Software

Bloomberg is recalling almost 81,000 electric cars in China -- more than it typically ships from its Shanghai factory in any given month due to a software issue and seat belt problems.

The US EV maker will call back 70,434 imported Model S, Model X and Model 3 vehicles, and 10,127 China-made Model 3 cars, the nation s State Administration for Market Regulation said in a statement Friday.

The Model S and Model X recalls require an over-the air software fix to address a defect in the cars battery management system, which may lead to a loss of power, while the Model 3 s in question have a faulty seat belt fixture.

Tesla urged drivers to be cautious while urging them to return their Model 3 cars for a checkup and maintenance if needed.

The US electric vehicle maker is going through a rough patch in China, the world's biggest car market, with deliveries falling to 71,704 last month from a record high of 83,135 in September, underscoring the automaker's recent price cut to boost demand.

In China, Tesla is changing its marketing approach because of the fierce competition from domestic rivals like BYD Co. and uneven sales, which puts its growth plans at risk in what is also the world's largest electric-car market.

The company is struggling to boost sales due to the fact that the Shanghai factory has double capacity to around 1 million cars a year, despite the fact that it has shrunk to as little as one week from as long as 22 weeks earlier this year.

Elon Musk's company is afflicted with various controversies over product safety in China after a recent accident in the southeast of the country that killed two people.

The driver and his family insisted the accident must have been caused by a technical problem, as Tesla said earlier this month that it would assist a police investigation into the fatal crash involving the Model Y sports utility.

It reminded the public of a high-profile protest last year, during which a Model 3 owner climbed atop a display vehicle at the Shanghai auto show and yelled that she almost died because her brakes failed. Tesla, which initially enjoyed a red carpet welcome in China, finally made a public apology after facing criticism from local authorities and state-owned media, without acknowledging any defect to the car.

Friday s recall isn't the first for Tesla in China, although its scale is smaller than prior ones.

In June last year, a software fix was needed for more than 285,000 cars, or most of the vehicles it had delivered there in recent years, to address a safety issue identified by the country s regulators.

After the US, China is Tesla's most important market. The Model Ys and Model 3s made at its factory on the outskirts of Shanghai supply the local market and are also exported to other parts of Asia and Europe.

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