JETbitX trading platform

Tesla Shares To Face A Setback As It Recalls Over 430k Vehicles From China

The latest reports about Tesla seem to be going against the EV car manufacturing giant. This is because the company is now preparing for conducting a major recall.

The reports have confirmed that Tesla might be in the process of recalling a large number of vehicles from China. It has been claimed that the recalls are due to software issues causing problems with the rear lights.

Tesla to Recall 435,000

The year 2022 has been a major setback for Tesla because the company has continued facing issues with its production. As a result, the company has continued recalling vehicles from all over the world.

This is a major problem for the largest EV manufacturing company because it is exerting great pressure on the company. The share prices for Tesla are also not in a good shape.

The company has been struggling with its production and fixing the technical problems with the vehicles. On the other hand, the rivals of Tesla seem to be in much better shape.

So far, Tesla has recalled over 4 million vehicles in the year 2022. The latest update means that the count is about to surge to 4.43 million.

Tesla has plans of recalling over 435,000 vehicles and this time, they are going to be from China. For Tesla, China is the second largest automobile market after the US.

Therefore, Tesla has to act fast against every major issue with its productions, so it can save its reputation.

Models Recalled by Tesla

According to the data, Tesla is planning to recall Model Y and Model 3 vehicles from China. Model Y, they have plans of recalling a total of 292,855 vehicles. As for Model 3, they are going to recall 142,277 vehicles.

The reason behind the recall is the software updates that have caused an issue with the rear lights of the vehicles. The information has been confirmed by the regulatory authority in China on Thursday.

The regulatory authority and the rear lights may be major safety hazards for drivers, especially at night. Therefore, they cannot take the risk and Tesla has to deal with the problem at the earliest.

The same Issue was reported in the US

This is the second time Tesla had to recall these many vehicles for a software issue. The same issue was reported in the United States where the rear vehicle lights were facing issues after the software update.

However, the issue was reported last month and Tesla had to recall a total of 321,000 vehicles from within the United States.

The recall does not mean that Tesla will need to bring in all the vehicles to fix them. Instead, car owners will be required to let their vehicles carry out the new software update that will fix the problem.

Chinese Market is Hurting

It has become a major challenge for Tesla to maintain its position in the Chinese EV market. This is because the company seems to be facing many technical issues and has to carry out many recalls.

It was just last week when Tesla had to recall over 80,000 vehicles from the Chinese market. The issue pertaining to the software and the seatbelt of the vehicles.

Tesla already knows that the Chinese EV market is a major one for the company’s success. Although several traditional vehicle giants have entered the EV space Tesla is still at the top.

If these issues keep arising, especially in one of the largest EV markets, Tesla may end up losing its top spot to other companies. The EV maker is already rivaled by Chinese EV startups such as Li Auto, Nio, and XPeng.

These companies are coming up with very well-designed EVs that are challenging the technology and software offered by Tesla.

The company has to be on its toes and avoid making mistakes that may cause it to lose its business in the global EV markets.

Tesla’s shares have remained unmoved in the recent trading session and they currently sit at $194.70. With the fourth quarter facing many challenges, Tesla’s earnings may be badly impacted.