Tesla recalls more than 3,000 Model X cars in China
A potential defect in the vehicles could make steering harder and increase the risk of a crash
will recall 3,183 Model X cars in China due to an alleged defect that could make steering harder and increase the risk of a crash, Reuters reports.
The recall was announced by the Chinese State Administration for Market Regulation. The sport-utility vehicles made before October 2016 will be recalled from June.
The move is a part of a broader issue with excessive corrosion of the steering wheel in Model X. In North America, Tesla will recall 15,000 vehicles of such type. However, no safety issues related to the defect were reported so far.
Tesla stock went down this week as the company announced that it would offer $2bn (€1.8bn, £1.5bn) of common stock. Moreover, the Department of Justice asked Tesla to voluntarily provide it with information about taking the company private and Model 3 production rates, which could extend further losses.
On Friday, February 14, Tesla's shares were down 2 per cent at premarket to $788.
Still, the stock gained 75 per cent since the start of the year, as Tesla launched its factory in China and reported record quarterly results. Following the surge, the company hit $100bn in market cap.
Tesla is currently expanding its business to the EU and China, with two new plants built in Brandenburg, Germany, and Shanghai, China.
The Shanghai plant was opened ahead of schedule and the first car produced there has already been delivered. Elon Musk wants the factory to produce 3,000 cars monthly in future.
FURTHER READING: Tesla shares slide after $2bn stock offering is announced
FURTHER READING: Tesla stock surges as company extends profit run