China’s market regulatory agency claims that leading electric vehicle manufacturer Tesla Inc. (TSLA) is recalling a total of 107,293 China made Model 3 and Model Y vehicles. The agency made the announcement of May 16 citing that the vehicles are being recalled due to overheating which may cause the center touchscreen display to malfunction.
Citing a statement published by the State Administration for Market Regulation (SAMR), the overheating issue could also result to malfunctioning of other parts including the windshield settings and gear displays.
This development comes at a time when the car industry has been enduring the unfortunate global shortage of computer chips and a rising cost of raw materials which has been partly contributed to the ongoing Russia-Ukraine war.
Many automakers including Tesla, have been increasing their car prices attributing to the increasing costs of raw materials. Just last week, Toyota said it expects the rising costs of raw materials to eat up its annual profits by 20%, its industry peer Nissan says that id does not expect any profit growth this year.
