Tesla recalls hundreds of Model 3 cars that were shipped to China

Finance

Tesla China-made Model 3 vehicles are seen during a delivery event at its factory in Shanghai, China January 7, 2020.
Aly Song | Reuters

BEIJING — Tesla is recalling more than 700 units of its Model 3 electric car that were imported into China, the central government’s market regulator said Thursday.

The announcement follows recalls of tens of thousands of Tesla vehicles in China and the U.S. in the last several months. Elon Musk’s automaker has also come under increased regulatory scrutiny in China in the last several months after a slew of negative consumer and media reports on brake failures and collisions.

Thursday’s recall affects a total of 734 vehicles produced in 2019, the State Administration for Market Regulation said on its website, citing a recall plan that Tesla filed.

The cars either have a seat belt issue that could increase the risk of passenger injury in the event of a collision, or a tire-related problem that could increase the risk of collision, the regulator said.

Tesla will notify affected car owners, and conduct free inspections and repairs, the statement said.

Tesla shares were mildly lower in extended-hours trading, after falling 3% during Wednesday’s trading session in New York.

A representative for Tesla did not immediately respond to an emailed request for comment.

The U.S.-based automaker opened a factory in Shanghai in 2019. Tesla began delivering China-made Model 3 cars to customers last year, and China-made Model Y vehicles this year.

Tesla’s Model 3 has ranked among the three best-selling electric cars in mainland China, outselling similarly priced models from Chinese start-ups such as Nio. However, a budget car called the Wuling Hongguang Mini EV has climbed into first place in recent months.

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