In the latest blow to Tesla, China will order security repairs for all its cars Automotive news

Tesla Inc.’s intentions in China were hit hard over the weekend when the government ordered almost all the cars sold nationwide – more than 285,000 of them – to deal with a safety issue.

The State Administration of Market Regulation said in a statement on Saturday that the action involves 211,256 locally produced vehicles and 35,665 imported ones, as well as 38,599 Model Ys made in China. The California automaker began shipping a Model Y sports vehicle in January, so the recall will affect almost every driver it buys.

The Chinese agency said the vehicle’s autopilot could be activated automatically, causing potential sudden acceleration. In most cases, repairs need to be done remotely to update the online cruise control features of the car online. Tesla will upgrade to a free version.

While Tesla apologized through Weibo’s official customer service, saying “national security will continue to improve in line with the requirements,” the remembrance is one of the most embarrassing delays the company has had in China. A protest that went viral at a Shanghai car show in mid-April and numerous accidents have worsened public opinion of the EV pioneer. Some local governments and official bodies are reviewing Tesla property among employees, concerned that the cars pose safety risks. .

In March, Tesla banned them from some military complexes and housing complexes because of concerns about the cameras being built. Tesla immediately went to reassure the authorities, saying that the data collected in China is stored locally.

The impact of the necessary software repairs on Tesla’s Model Y is particularly unfortunate. The crossover SUV, with a range of up to 594 kilometers, allowed Tesla to target much larger bases for customers in the world’s largest market for electric vehicles and cars.

CEO Elon Musk said he has the power to sell all other vehicles that the Model Y makes, and earlier this month, the Chinese Passenger Car Association predicted increased interest in larger cars and larger spaces, especially in the seven-seat category, which is allowed by government regulations. parents to have more children.

Tesla Inc. Model Y electric vehicles outside the window of the manufacturer in Shanghai, China, on Friday, January 8, 2021, in China. Those looking to get a new Model Y made locally by Tesla customers have a longer wait, indicating a strong initial demand. SUV built in Shanghai.
Credit Suisse Group AG said in a statement last week that the most important target for the $ 800 share price of Tesla shares is the difficulties of Model Y and the lack of demand in international markets. Shares of Tesla’s Nasdaq traded higher at $ 671.87 on Friday, down about 5% from January. Last year they rose by 743%.

Delivery times for Tesla in some parts of China have been “reduced from 39 to 33 days. It may indicate less demand for sales,” wrote Credit Suisse analyst Dan Levy. However, if some customers have changed brands due to recent negative headlines, “there is still a lot of demand for the Model Y to keep up with sales volume,” Levy said.

Foreign brands accounted for about 37% of new energy vehicle sales in China last year and 57% year-on-year. The nation is Tesla’s second largest market after the U.S. and now exports cars made in China to Europe from Shanghai Gigafactory. But a few fast-growing growers are threatening its strong stance, especially Nio Inc. and Xpeng Inc. In the mass market, local buyers are earning cheap and functional electric cars made by SAIC-GM-Wuling Automobile Co.

Sales of Model Ys in China, which start at about $ 53,000, more than doubled in May from April onwards. April data fell in March as some production lines at Tesla’s Shanghai plant were suspended for two weeks for maintenance and adaptation.

“When the Model Y reaches full production, we’ll probably see a ratio of almost 2-1,” Tu Le, Beijing-based chief consulting officer at Sino Auto Insights, said earlier this month. “Chinese consumers love SUVs and crossovers. I think Model Y will do very well towards the end of this year. “