Tesla Claims China Caused Unnecessary Recall

Tesla Claims China Caused Unnecessary RecallEarlier Friday morning, it was reported that Tesla Inc (NASDAQ: TSLA) would be recalling 30,000 Model S and X vehicles in China. This was due to suspension issues and was being forced by the Chinese government. Now, a letter obtained by Electrek shows Tesla thinks there is no defect, and no recall is needed.The letter is from Elizabeth H. Mykytiuk, Tesla's managing counsel for regulatory affairs, shows Tesla didn't think the recall was necessary, but it was the easier choice when compared with battling through China's regulatory body that asked for the recall."Due to the opinion of SAMR/DPAC that the topic required a recall in the China market, Tesla was left with the choice of either voluntarily recalling the subject vehicles or carrying a heavy burden through the Chinese administrative process," the letter reportedly reads. "While Tesla disagrees with the opinion of SAMR/DPAC, the Company has decided not to dispute a recall for the China market only."Tesla said that the failure pointed out by Chinese regulators happened in less than 0.05% of vehicles outside of China vs about 0.1% of vehicles in China. Electrek reported in 2016 that the NHTSA has investigated a potential issue in Tesla's Model S and Model X suspension, but they didn't find any defect.Photo courtesy of Tesla.See more from Benzinga * Options Trades For This Crazy Market: Get Benzinga Options to Follow High-Conviction Trade Ideas * Tesla Hacker Discovers New Radar, Ultrasonic Sensors, More * GM Reportedly Does Not Yet Have A Working Hummer EV(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Source link

Share this post

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on pinterest
Share on print
Share on email

Leave a Reply