Chinese market regulatory agency has informed that Elon Musk’s Tesla will be recalling 107,293 Model 3 and Model Y cars due to overheating issues. Overheating issues have reportedly been majorly affecting the touch screen entertainment system, among other components.
This comes as Tesla has recently revealed plans to shift majority of Model Y manufacturing to their brand new manufacturing unit in Texas, US.
According to a statement put out by State Administration for Market Regulation (SAMR), the overheating issues could potentially lead to other problems in windshield settings and gear display’s.
Tesla has been largely embraced by the Chinese market, as Elon Musk’s prowess and reputation lead to President Xi Jinping offering Tesla Tax incentives and low interest loans (all that besides making a fundamental legislative change allowing foreign entities to hold sole ownership of automobile ventures).
There’s a caveat or two here, Chinese regulatory authorities continue to crack down on big tech companies (VC groups like SoftBank have been collateral damage). Also, it is yet to be known how well it sits with the Chinese administration that Elon has been an active helper of Ukraine’s cause, providing expedited starlink services on ground zero.
It remains to be seen how this set back affects the entrepreneurs endeavours in the near future. Elon Musk has been relying heavily on his trustworthy brainchild Tesla Motors, as he makes a push to close the deal to acquire Twitter. Very recently, he sold $4 Bn worth of Tesla Shares, possibly to finance the $44 Bn dollar Twitter acquisition deal.
