Tesla is recalling 1.68 million cars in China for a remote software upgrade to ensure that they warn the driver when the trunk is not locked shut.
The announcement made on last Tuesday also said that vehicles with faulty trunk latches will be repaired free of charge. The recalls affect some imported Model S and Model X vehicles and domestically made Model 3 and Model & cars manufactured between October 15, 2020 and July 17, 2024.
The recall notice said that an unlocked trunk lid could open during driving, interfering with the driver’s vision.
The US-based electric vehicle maker will fix the problem through a remote software upgrade, the State Administration for Market Regulation said.
China is a major market and production base for Musk’s Tesla, while also a source of growing competition from Chinese EV makers.
Tesla reported a sharp drop in second-quarter net income last month, as sales fell despite price cuts and low-interest financing. The company reportedly made USD 1.48 billion from April through June, less than the USD 2.7 billion it made in the same period of 2023. It was Tesla’s second-straight quarterly net income decline.
Second quarter revenue rose 2% to USD 25.5 billion, beating Wall Street estimates of USD 24.54 billion, according to FactSet.