While China has been integral to electric car maker Tesla (TSLA) and its operations, it is about to prove a bit of a headache as well. In fact, reports note that Tesla is set to roll out a massive recall effort in China to address some key safety concerns. But the effort will likely be fairly straightforward, reports note, and investors were only modestly concerned, sending shares down fractionally in Friday afternoon’s trading.
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The recall focuses on 1.2 million cars in China, which all suffer from what the reports call “a potential malfunction of the rearview camera.” Further, there was a slightly smaller recall effort for 871,087 Model 3 and Model Y vehicles, but this was over “steering issues.” As it turns out, though, the planned fix for both sets of issues will be comparatively simple: a free, over-the-air software update that will address these issues.
This is not the first time Tesla has staged a recall in China; back last January, Tesla put out a recall on 1.6 million cars over some problems with its driver assist systems. And with more competition showing up in the Chinese market, Tesla has to put its best foot forward with customer service in order to better ensure that Chinese car buyers simply do not look elsewhere.
Kia Owners Out, Extension Cords In
And Tesla is eager to make its cars more attractive. New reports note that it will be easier to find space at a Supercharger station because Kia owners are no longer allowed to charge therein. Previously, some Kia owners were using a loophole that allowed them to charge at Supercharger stations, but that loophole has been closed, leaving Kia electric owners out in the cold.
Further, A2Z—a supplier of third-party electric vehicle charging equipment—has come out with a clever idea that probably should have been a thing long before now: an extension cord. This summer, users will be able to get their hands on a cord that allows non-Tesla cars to better use Tesla Supercharging stations by plugging into the Supercharger charging port and then extending out from there to plug into the vehicle. Just like how an extension cord would normally work.
Is Tesla a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 12 Buys, 11 Holds, and nine Sells assigned in the past three months, as indicated by the graphic below. After a 124.46% rally in its share price over the past year, the average TSLA price target of $339.06 per share implies 17.41% downside risk.
