ZCZC
BCN-34
CHINA-US-TESLA-AUTO-TRADE
Tesla says working on China import hiccup
BEIJING, March 6, 2019 (BSS/AFP) – Tesla said Wednesday it was working to
resume imports of its new Model 3 sedan in China after the company said a
labelling hiccup caused problems with customs.
Elon Musk’s electric car firm denied the issue would impact sales of the
vehicle in China, a key market for the automaker as it faces a battle to
control costs and maintain profitability.
“This error resulted from misprinted labels on certain Model 3 vehicles,”
a Tesla spokesperson said in a statement.
“We have already reached a resolution with Chinese customs, and we are
working closely with them to resume clearance procedures on these vehicles,”
the spokesperson said.
Local business weekly Caixin reported Tuesday that China’s customs
administration had suspended imports of its Model 3 cars and was holding more
than 1,600 of the vehicles — briefly sending Tesla’s stock tumbling in the
US.
Musk is betting on China’s growing market for electric cars as regulators
push the industry towards an all-electric future.
Musk was in China in January for the ground-breaking of Tesla’s first
overseas factory, which will allow it to sell directly in the world’s largest
market for electric vehicles.
The new plant will eventually have an annual production capacity of
500,000 vehicles, the California-based company has said, dramatically
increasing its output.
Musk said the company planned to finish the “lightning” fast construction
of the Shanghai factory by the end of the year and start production.
BSS/AFP/HR/1440