Tesla Shares Up Despite Ongoing Challenges In China

The shares of the electric vehicle manufacturer are up at the pre-market trading session today, despite its challenges in China. The company has issued a soft recall of 285,000 cars in China. However, that hasn’t affected its stock price.

Tesla Shares Up By 1.9% Today

The shares of the leading electric vehicle manufacturer, Tesla, are up by 1.9% at Monday’s pre-market trading session. This is despite the company’s ongoing challenges in China. During the weekend, China’s vehicle safety authority, the State Administration for Market Regulation (SAMR), revealed that Tesla is carrying out a voluntary recall of its Model 3 and Model Y vehicles in the country.

Tesla is issuing the recall via a software update on 285,520 of the vehicles. The software update will fix alleged safety issues with the driver-assistance systems. According to the report, the recall covers 249,855 Model 3 sedans and Model Y manufactured by the company in Shanghai and another 35,665 Model 3 vehicles manufactured in the United States and imported to China.

The company’s stock price has gone up at Monday’s pre-market trading session, despite the recall challenges in China. At the time of this report, TSLA is trading at $684, up by 1.9% over the past few hours. Year-to-date, TSLA has declined. The stock began 2021 trading at $729, rising to a high of $880 in January. However, it has dipped since then and currently trades close to the $700 mark.

Tesla Users Don’t Have To Bring The Cars To The Factory

SAMR said the affected vehicles don’t have to be brought to the factory. The update would be conducted over the internet. The alleged flaw in Tesla’s systems could lead to drivers mistakenly switching on or off an active cruise control feature in their Model 3 or Model Y cars under certain conditions. If that happens, a driver’s Tesla could suddenly accelerate, which could lead to collisions, the SAMR said.

Tesla has made it possible to conduct software updates over the internet to cars. The company has become a foreign luxury brand in China as it retains a market share despite the other electric car manufacturers in the country.