Here are the details about the recall issues and the challenges Tesla has faced in China.
Why are Tesla models being recalled?
CNN reported that the cruise control system in certain Tesla models can be activated when drivers shift gears or accidentally touch the gear selector. This can cause accidental acceleration and
, according to China's State Administration for Market Regulation. The cruise control issue can be resolved remotely or in person with a free software update.
Although this problem has a simple fix, the recall has dealt another blow to Tesla’s reputation. Wedbush Securities Analyst, Dan Ives, said that "This is a black eye for Tesla in a key China region which will be a headwind in the near term to overcome," as reported by
Local government and official institutions were also investigating cars owned by staff due to concerns that Tesla vehicles may pose a security risk. CNN said that so far, five Chinese regulatory agencies have questioned the safety and quality of
, to announce the recall of nearly every car sold in the country to date. Tesla vehicles affected by the recall include the Model 3 and Model Y.
249,855 Model Y and Model 3 cars made at the Tesla factory in Shanghai as well as 35,665 imported Model 3 cars are impacted by the recall. The California-based automaker apologized for any inconvenience caused by the unexpected recall. Tesla said it would keep improving its vehicles to align with China’s safety regulations.
, many vehicles made by Tesla were recalled in 2021.
In January, 2012-2018 Model S cars and 2016-2018 Model X cars were recalled due to a malfunctioning 8GB embedded multimedia card. The malfunction of the card would cause the center display to fail.
In May, Model X 3 cars from 2019-2021 and Model Y cars from 2020-2021 were recalled due to loose brake caliper bolts. This could lead to the brake caliper coming into contact with the wheel rim, cause a loss of tire pressure, and increase the risk of a crash.
These are a few of the recalls issued by Tesla this year. But, recalls are common and affect many other automakers as well.
Is it too late for Tesla to turn their reputation around?
Tesla CEO Elon Musk got the green light to build and operate a Gigafactory in Shanghai in 2019. At the time, Tesla had a robust brand image with products that Chinese car buyers perceived to be of better quality than other electric vehicles, according to
In April, a protest at a Shanghai auto show went viral, as reported by Bloomberg News. A Chinese customer claimed that the brakes in her Tesla had failed and almost killed her and her family. This led to concerns that the public opinion of Tesla would be damaged.
However, in May, there was a surge in sales for the Model Y. This indicates that Tesla can recover its reputation as it improves the safety of its vehicles.
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