Tesla Slips As China Vehicle Recall Hands Bears More Ammunition By Investing.com

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© Reuters

By Dhirendra Tripathi

Investing — Tesla (NASDAQ:) shares were down 1.5% in premarket trading on Thursday after a recall of its vehicles sold in China added to the list of negative news at the company.

Tesla is recalling 734 vehicles that include 311 units of the imported Model 3, China’s Global Times said.

Tesla’s woes in China seems to be piling up fast. The company has come under increased scrutiny in the country with the regulators increasing their oversight of the company and the media and people venting their anger against it on social media platforms.

The EV maker has had to tackle allegations ranging from possible spying by the cameras loaded on its vehicles to faulty brakes in its cars sold in China.

On Wednesday, the company ordered recall of nearly 6,000 vehicles over concerns that their brake caliper bolts might loosen, which could result in a loss of tire pressure.

The recall covers certain 2019 to 2021 Model 3 vehicles and 2020 to 2021 Model Y vehicles, Reuters said.

It is not clear if the recall in China is part of the Wednesday announcement.

In another development Wednesday, a WSJ report said the Securities and Exchange Commission told off Tesla for CEO Elon Musk’s “use of Twitter.” The agency said Musk’s tweets have violated the terms of the 2018 settlement that required Musk to get his tweets preapproved by company lawyers.

As part of the agreement reached with the U.S. markets regulator, Musk was also forced to step down as the company’s Chairman. Current incumbent Robyn M. Denholm replaced him.

The maverick CEO has been unrelenting with his tweets, directly or indirectly influencing prices of assets ranging from cryptocurrencies to shares of listed companies.

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