Tesla recalls more than 1.6 million EVs in this country
What's the story
Elon Musk's electric vehicle company, Tesla, is recalling approximately 1.68 million cars in China to conduct a remote software upgrade.
The State Administration for Market Regulation, China's market regulator, reported the recall late Tuesday.
The software update aims to ensure drivers receive warnings if their vehicle's trunk is not securely locked.
Recall details
Affected models and production dates revealed
The recall affects certain imported Model S and Model X vehicles, along with domestically produced Model 3 and Model Y cars.
According to the announcement, the vehicles included in this recall were manufactured between October 15, 2020, and July 17, 2024.
Tesla has also committed to repairing any vehicles with faulty trunk latches free of charge.
Market challenges
Recall amidst rising competition and declining sales
The recall comes at a time when Tesla is facing increased competition from Chinese electric vehicle manufacturers in a market that serves as a significant production base for the company.
Last month, Tesla reported a substantial drop in its second-quarter net income despite implementing price cuts and offering low-interest financing.
This was accompanied by a decline in sales, further highlighting the challenges faced by the company in this key market.