Tesla recalls 30,000 US-made Model S and X vehicles in China, as local challengers chip away at its market share

Tesla has made its biggest recall of two of its bestselling models sold to China, as its image of infallibility gets a smudge just as competition is heating up in the world’s biggest market for electric vehicles.

The carmaker will take back 30,000 Model X electric sports utility vehicles and Model S liftback sedans made in the United States between September 2013 and January 2018 to fix faulty suspensions, according to a notice by China’s State Administration for Market Regulation. Tesla will replace the rear and upper linkages of the suspensions with improved components to ensure safety, according to the statement.

The recall, representing most of the US-made electric vehicles Tesla sold in China during the period, adds to the 3,000 units of the 2016 Model X SUVs taken back in February to repair a fault that could potentially lead to loss of steering.

Dozens of new models were launched this year in China, as electric carmakers from BYD in Shenzhen to Xpeng in Guangzhou compete for the hearts and check books of the nation’s buyers, chipping away at Tesla’s market share.

“Car recalls are not unusual, but Tesla’s recall of the imported vehicles at this time might have an impact on its businesses in China,” said Gao Shen, a Shanghai-based independent analyst covering the manufacturing sector. “Some would-be car buyers would cast doubts on Tesla’s quality while others will cement their belief that its cars are safer and better supported by the recall efforts.”

Tesla representatives in China could not be reached for comment on Friday. The carmaker has been making its Model 3 four-door fastback sedan at its Gigafactory 3 in Shanghai’s Lingang free-trade zone since late 2019.