Suspension Defects Force Tesla To Recall 30K Imported Units In China: Bloomberg

Tesla Inc (NASDAQ: TSLA) has recalled 30,000 units of Model X and Model S vehicles in China owing to faulty suspensions, Bloomberg reported on Friday. 

This comes a day after the electric vehicle marker reported a profitable quarter.

What Happened: Reportedly, there were two distinct issues with the suspension, and some of the recalled vehicles were affected by both.

The recall is restricted to vehicles imported in China and manufactured between Sept 17, 2013, to Jan 15, 2018, as per a statement made by the Chinese State Administration for Market Regulation — Bloomberg.

Earlier this week, Tesla recalled some Model Y cars for issues with the trailer brake lights. A statement by the U.S. National Highway Traffic Safety Administration (NHTSA) flagged a software error that caused the tail lights to malfunction. The automaker addressed the issue with an over-the-air firmware update.

The Chinese imports have dramatically reduced after Tesla began the manufacturing operations in its Shanghai facility in 2020. The facility has a build capacity of 200,000 vehicles annually.

Why Does It Matter: In February, Reuters reported that Tesla recalled 3,183 Model X vehicles in China due to a safety risk. All the recalled units were made from June 2016 onward.

On the other hand, many EV automakers are dealing with battery-related challenges. The challenge is not the charging infrastructure but a potential fire hazard.

In October, NHTSA called for a scrutiny of General Motors Company’s (NYSE: GM) Chevrolet Bolt after complaints from two owners, according to Yahoo Finance. The owners claimed that their vehicles caught fire despite being parked and unattended.

South Korean automaker Hyundai Motor Company (OTC: HYMTF) recalled 25,000 Kona models over battery fire concerns. The company also filed a voluntary recall in the U.S. for vehicles built between September 2017 and March 2020.

Price Movement: TSLA shares closed 0.75% higher to $425.79 on Thursday.

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