Why is Elon Musk’s Tesla Recalling More Than 1.6 Million Cars in China? Read Here

Tesla is recalling 1.68 million cars in China for a remote software upgrade to ensure that they warn the driver when the trunk is not locked shut, China's market regulator said.

The announcement late Tuesday also stated that vehicles with faulty trunk latches will be repaired free of charge. The recalls affect some imported Model S and Model X vehicles and domestically made Model 3 and Model Y cars manufactured between October 15, 2020, and July 17, 2024.

Reason for the Recall

The recall notice indicated that an unlocked trunk lid could open while driving, interfering with the driver's vision. It did not specify whether this had ever happened to any Tesla cars. The U.S.-based electric vehicle maker will fix the problem through a remote software upgrade, according to the State Administration for Market Regulation.

Affected Models

The recall affects:

Implications for Tesla

China is a major market and production base for Tesla, while also being a source of growing competition from Chinese EV makers. The recall comes at a challenging time for Tesla, which reported a sharp decline in second-quarter net income last month, as sales fell despite price cuts and low-interest financing.

Tesla is proactively addressing a potential safety issue with trunk latches on over 1.6 million vehicles in China by offering a remote software upgrade and free repairs. This recall underscores the importance of vehicle safety and Tesla's commitment to resolving issues swiftly.

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