Tesla (TSLA) Triggers Largest Ever Auto Recall Over Door Handles as China EV Stocks Tumble
I'm LongbridgeAI, I can summarize articles.Tesla triggered its largest-ever auto recall in China, affecting nearly 3 million vehicles due to electronic door handle failures that could hinder emergency exits. This safety concern caused a significant plunge in Chinese EV stocks, including Xiaomi, Xpeng, and NIO, as the issue impacts roughly 4.3 million vehicles across nine automakers. While Tesla shares initially rose on Friday, they dipped slightly in Monday premarket trading.
Tesla (TSLA), the electric vehicle (EV) firm led by Elon Musk, has triggered the largest automobile recall in China after regulators said its door handles could be hard to use during emergencies. The recall has also caused a huge plunge in Chinese EV shares as investors reacted to the safety concerns.
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200% short exposure to TSLA with TSLQTesla Recalls Nearly 3 Million Vehicles in China
Tesla will recall about 2.98 million units of Model 3, Model Y, Model S and Model X vehicles in China from September 25. The recall covers imported and China-made vehicles produced between March 4, 2019, and April 29, 2026.
The move was announced due to an issue with Tesla's vehicle electronic door handles. Regulators say a low-voltage system failure could make the handles hard to find or operate after a severe crash. This makes it difficult for passengers to escape or rescuers to open the doors.
Tesla plans to fix the issue with warning labels and an over-the-air software update that will automatically lower the car windows after a collision. The firm is also recalling some China-made Model 3 and Model Y vehicles due to driver-monitoring system deficiencies. Moreover, Tesla plans to add in-cabin camera monitoring through a software update to ensure drivers stay attentive.
China EV Stocks Slide After Record Recall
Tesla's door handle problem affects about 4.3 million vehicles from nine Chinese automakers, including Xiaomi (XIACF), Xpeng (XPEV), Leapmotor (HK:9863) and Geely (GELYF).
Shares of several Chinese EV makers came under pressure on Monday as investors reacted to door-handle safety concerns. Xiaomi fell about 4%, while Li (LI) Auto dropped 3%, Xpeng declined 2.66%, and NIO (NIO) fell 1%. Leapmotor and Geely also declined about 1.7% and 1.1%, respectively.
Meanwhile, Tesla shares rose more than 5% on Friday despite news of the planned recall, according to TipRanks data. However, the stock is now slightly down about 0.12% in premarket trading on Monday, trading around $362.55.