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2024.07.31

Word count: 926, reading time: about 2 minutes

Introduction: For Tesla, large-scale car recalls of over one million vehicles are nothing new.

Author |First Financial Daily Xiao Yisi

On July 30, according to a report from the National Highway Traffic Safety Administration (NHTSA), Tesla launched a large-scale recall involving Model 3, Model S, Model X from 2021 to 2024 and Model Y from 2020 to 2024, totaling 1.8496 million vehicles.

The reason for this large-scale recall by Tesla is that the software may not detect that the hood is unlocked, and the unlocked hood may open completely, obstructing the driver's view and increasing the risk of a collision. This recall will be completed through remote upgrade (OTA).

As of the close of trading on July 30th, U.S. time, Tesla's stock price fell more than 4% to $222.62, and its total market value shrank by more than $30 billion overnight to $711.2 billion.

This is Tesla's largest recall since December last year, when Tesla recalled 2.03 million vehicles in the United States, covering almost all Tesla vehicles on the road at the time, because the autopilot control system of these vehicles was not sufficient to prevent accidental operation.

This Tesla recall has not yet involved the Chinese market. However, within a month after the recall in the US market in December last year, on January 5 this year, Tesla also launched the largest recall in the history of the Chinese market, involving some imported Model S, Model X, Model 3 and domestic Model 3 and Model Y electric vehicles produced between August 26, 2014 and December 20, 2023, totaling more than 1.61 million vehicles. The reason for the recall is also related to the possible misoperation of the driver when the vehicle is turned on for assisted driving.

This year's recall also made Tesla the car brand with the largest number of recalls in the Chinese market in the first half of this year, with a gap of more than 700,000 vehicles from Honda (excluding Acura), which ranked second.

For Tesla, large-scale recalls of over one million vehicles are nothing new. In May last year, Tesla launched a recall of over 1.1 million vehicles in China, including some imported Model S, Model X, Model 3 and domestically produced Model 3 and Model Y vehicles produced between January 12, 2019 and April 24, 2023, which is basically equivalent to all the electric vehicles sold by Tesla in the Chinese market in the past four years. This Tesla recall is also in the form of OTA, allowing drivers to choose energy recovery braking strategy.

Tesla's several large-scale recall incidents mentioned above were all resolved by pushing newly developed functions through OTA. After OTA technology was widely used in the recall field, it improved the recall efficiency and reduced the recall cost, but on the other hand, it also blurred the boundary between "OTA" and "recall".

According to the "Regulations on the Management of Recalls of Defective Automobile Products" and the "Notice on Further Strengthening the Supervision of Recalls of Automobile Remote Upgrade Technology" issued by the General Office of the State Administration for Market Regulation, software problems are also quality issues. If automobile companies use OTA upgrades to eliminate product defects, they must be treated as "recalls."

WeChat Editor| Ziang