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Tesla Recalls 1.6 Million Electric Vehicles in China

Tesla Recalls 1.6 Million Electric Vehicles

Electric car manufacturer Tesla(TSLA) is recalling more than 1.6 million Model S, X, 3, and Y electric vehicles in China, its second-largest market, over issues with their automated assisted steering and door latch controls. 

China’s State Administration for Market Regulation(SAMR) announced the recall on Friday and also said that Tesla Motors in Beijing and Shanghai will use remote upgrades to fix the issue. 

The SAMR said, “For vehicles within the scope of this recall, when the automatic assisted steering function is turned on, the driver may misuse the level two combined assisted driving function, increasing the risk of vehicle collision and posing a safety hazard.”

Much like a similar recall in the US last month, the issues are expected to be addressed through remote software updates, which include adding more alerts to prevent drivers from relying too heavily on these features. 

Last month, Tesla had to recall almost all of its vehicles in the USA after the National Highway Traffic Safety Administration raised concerns over its autopilot feature. The recall affected more than 2 million vehicles. 

Additionally, Tesla Motors will also upgrade the software of the Model S and the Model X vehicles to address door latch concerns which potentially unlock in crashes. Similar software updates were implemented in the USA last month after it had to recall more than 120,000 units over the same issue. 

China is a significant market and manufacturing centre for Tesla and CEO Elon Musk also has built close ties with Chinese officials. 

Despite the news, Tesla’s shares were up  0.5% at $239.25 per share on Friday and have more than doubled in value over the past year.

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