Tesla Recalls 734 Model 3 EVs Shipped To China Over Seat Belt, Tire Issues

Tesla Inc TSLA is recalling 734 units of its mid-size sedan Model 3, CNBC reported on Thursday — citing China's State Administration for Market Regulation. 

What Happened: The recall includes Model 3s that were built in 2019 and shipped to China. It follows recalls of tens of thousands of Tesla vehicles in China and the U.S. in the last several months, the report noted.

The recalled vehicles have either a seat belt or tire-related problem that could increase the risk of passenger injury in the event of a collision.

See Also: Tesla Works On Getting Customers In China Access To Vehicle Data Amid Regulatory Scrutiny

Why It Matters: The Elon Musk-led electric vehicle maker has been facing rough weather in China amid intense regulatory scrutiny over the last several months following a slew of negative consumer and media reports on brake failures and collisions.

China is Tesla's second-largest market after the United States and contributes nearly 30% of the electric vehicle maker's global sales.

See also: How to Invest in Tesla Stock

Tesla opened its Shanghai factory in 2019 but started delivering China-made Model 3 cars last year and China-made Model Y vehicles this year.

Price Action: Tesla shares closed 3.01% lower at $605.12 on Wednesday.

Read Next: Elon Musk Says Tesla EV Price Hikes Happening Due To Supply Chain Issues

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Photo: Courtesy of Tesla