This massive recall, on the Chinese market, caused an 8% drop in Tesla shares.
Electric car giant Tesla will “recallmore than 285,000 cars on the Chinese market after a survey that showed their assisted driving software could cause collisions, the Chinese government announced on Friday evening. Tesla, which said the alert affected some of the Model 3s and Model Ys, either imported or made in China, will contact affected owners and replace their software with a newer version free of charge.
It’s the latest in trouble for the pioneer of the self-driving car, which has been investigated by Chinese authorities after several fatal crashes in recent months. “Due to problems with the speed control system (…), the driver can easily start it by mistake“, noted the authorities in their report. “This can cause a sudden increase in speed, and in extreme cases cause a collision“.
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The automaker has also had to deal with numerous complaints on social media from its Chinese customers about quality and service issues. This culminated in the protest at the Shanghai Auto Show and widely taken up by the media and social networks, by a customer who said she almost died due to a failure of the braking system on her vehicle.
The speed control system, which is supposed tocontrolling vehicle speed to keep pace with surrounding trafficis an important part of the assisted driving feature, according to the Tesla site. The American company, which was authorized, which is rare in China, to build a factory in Shanghai without a Chinese partner, is very popular in China, where it sells a quarter of its cars. The announcement of the recall caused Friday in the United States a drop of nearly 8% of the action Telsa.