Tesla Recalls Almost 50,000 Cars in China Over This Issue

Electric vehicle giant Tesla has recalled nearly 50,000 Model S and Model X cars in China over faulty suspension.

The China State Administration for Market Regulation announced on Thursday night that Tesla has recalled up to 48,442 of its Model S and Model X electric vehicles, with the recall concerning potentially faulty and unsafe front and rear suspensions.

The vehicles had been made by Tesla in the United States and exported to China. The U.S. vehicle safety authority, NHTSA, has not said whether a similar recall in the U.S. may be necessary.

In a statement e-mailed to CNBC, the NHTSA said:

“NHTSA is aware of the Tesla recall due to suspension problems in China. At this time, the agency has not received significant complaints related to these issues in the United States. The agency is in contact with Tesla and monitoring the situation closely, and will not hesitate to take action to protect the public against unreasonable risks to safety. If you think your vehicle may have a safety defect that isn’t part of a current recall, contact NHTSA.”

Tesla’s share price was modestly down on Friday following the news.

According to China’s auto industry news site, Gasgoo, the recall affects 29,193 imported Model Ss and Model Xs, produced between Sept. 17, 2013, and Aug. 16, 2017, and 19,249 imported Model Ss produced between Sept. 17, 2013, and Oct. 15, 2018. The cars were produced at Tesla’s Fremont, California plant.

The Chinese agency has ordered Tesla to replace the rear linkages of their left and right front suspension and the upper linkages of the left and right rear suspension with an improved one for all the cars that are part of the recall. The fixes should be at no cost to the owners.

Earlier in the week Tesla received upgrades from two Wall Street firms following the electric carmaker’s “impressive” third quarter results.

Baird upgraded shares of Tesla to outperform from neutral and raised its 12-month price target to $488 per share from $450 per share while JMP Securities upgraded Tesla’s stock to market outperform from market perform with a $516 per share price target.

Tesla reported third-quarter results including net income (GAAP) of $331 million on revenue of $8.77 billion. The car maker previously reported deliveries of 139,300 vehicles for the period ending September 30, 2020.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.