Tesla's Model Y sports-utility vehicle. The recall in China will affect all those who bought the Model Y cars, which Tesla only began deliveries of in January. Getty
Tesla's Model Y sports-utility vehicle. The recall in China will affect all those who bought the Model Y cars, which Tesla only began deliveries of in January. Getty
Tesla's Model Y sports-utility vehicle. The recall in China will affect all those who bought the Model Y cars, which Tesla only began deliveries of in January. Getty
Tesla's Model Y sports-utility vehicle. The recall in China will affect all those who bought the Model Y cars, which Tesla only began deliveries of in January. Getty

Tesla forced to recall almost all its cars in China over safety issue


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Tesla's aspirations in China were dealt a major blow at the weekend after the government ordered that almost all the cars it has sold in the country – more than 285,000 of them – be fixed to address a safety issue.

The State Administration for Market Regulation said on Saturday that the action involves 211,256 locally produced Model 3 vehicles and 35,665 imported ones, as well as 38,599 China-made Model Ys.

The California-based electric car maker only began deliveries of the Model Y sports-utility vehicle in January, so the recall will affect pretty much every driver who bought one.

The Chinese agency said the vehicles’ autopilot systems can be activated automatically, potentially leading to crashes from sudden acceleration.

In most cases, the fix should be able to be made remotely with an online update to the cars’ active cruise control feature. Tesla will upgrade the software for free.

While Tesla apologised via its official customer support account on Weibo, saying that it will “continue to improve safety in strict accordance with national requirements”, the recall tops a string of embarrassing setbacks for the company in China.

  • Tesla has revealed an updated version of its Model S. Courtesy Tesla
    Tesla has revealed an updated version of its Model S. Courtesy Tesla
  • An interior view of the 2021 Tesla Model S Plaid. Courtesy Tesla
    An interior view of the 2021 Tesla Model S Plaid. Courtesy Tesla
  • Tesla has given the cars all-new interiors, with updated screens and climate controls. Courtesy Tesla
    Tesla has given the cars all-new interiors, with updated screens and climate controls. Courtesy Tesla
  • Tesla says it’s capable of 0-60 in less than two seconds. Courtesy Tesla
    Tesla says it’s capable of 0-60 in less than two seconds. Courtesy Tesla
  • Tesla claims it’s the fastest-accelerating production car in the world. Courtesy Tesla
    Tesla claims it’s the fastest-accelerating production car in the world. Courtesy Tesla
  • t’s also redesigned the battery pack and modules in the new cars. Courtesy Tesla
    t’s also redesigned the battery pack and modules in the new cars. Courtesy Tesla
  • It will cost $112,990. Courtesy Tesla
    It will cost $112,990. Courtesy Tesla

A protest that went viral at the Shanghai car show in mid-April and a spate of crashes has soured public opinion towards the EV pioneer. Furthermore, a few local governments and official institutions are reviewing Tesla ownership among their staff, citing concerns the cars pose security risks.

In March, Teslas were banned from some military complexes and housing compounds because of worries about inbuilt cameras. Tesla immediately moved to reassure authorities, saying any data collected in China is stored locally.

That the required software fix affects Tesla's Model Y is especially unfortunate.

The SUV crossover, which has a driving range of up to 594 kilometres (369 miles), allowed Tesla to focus on a much bigger customer base in the world's biggest market for EVs and cars overall.

Chief executive Elon Musk has said the Model Y has the potential to outsell all other vehicles it makes.

This month, China's Passenger Car Association forecast increased interest in larger, roomier cars, particularly in the seven-seater category, as government rules allow parents to have more children.

Credit Suisse said in a note last week that one key downside risk to its $800 price target for Tesla stock is Model Y difficulties and a lack of demand in international markets.

Tesla's Nasdaq-traded shares closed Friday at $671.87 and are down about 5 per cent since January. They rose by 743 per cent last year.

Tesla’s delivery times at some locations in China “have declined from 39 to 33 days – potentially an indication of fewer orders converting to sales”, Credit Suisse analyst Dan Levy wrote.

However, while some customers have switched brands due to recent negative headlines, “there are still ample Model Y orders to support continued sales volume”, Levy said.

Foreign brands accounted for about 37 per cent of new-energy vehicle sales in China last year and 57 per cent this year.

The nation is Tesla’s second most-important market after the US and it is now exporting China-made cars to Europe from its Shanghai Gigafactory.

Visitors check a China-made Tesla Model Y at the EV maker's showroom in Beijing. Reuters
Visitors check a China-made Tesla Model Y at the EV maker's showroom in Beijing. Reuters

But a handful of fast-growing, home-grown upstarts threaten its strong position, particularly Nio and Xpeng. In the mass market, local buyers are being won over by cheap, functional electric cars made by SAIC-GM-Wuling Automobile Company.

Sales of China-made Model Ys, which start from around $53,000, more than doubled in May from April. April’s figures were down on March because some production lines at Tesla’s Shanghai factory were suspended for two weeks for maintenance and adjustment.

"Once the Model Y gets to full production, we will probably see a ratio of almost two-to-one" versus the Model 3 sedan, Tu Le, the managing director of Beijing-based consultancy Sino Auto Insights said earlier this month.

“Chinese consumers love SUVs and crossovers. I think the Model Y is going to do really well towards the end of this year.”

Desert Warrior

Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley

Director: Rupert Wyatt

Rating: 3/5

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RESULTS

 

Catchweight 63.5kg: Shakriyor Juraev (UZB) beat Bahez Khoshnaw (IRQ). Round 3 TKO (body kick)

Lightweight: Nart Abida (JOR) beat Moussa Salih (MAR). Round 1 by rear naked choke

Catchweight 79kg: Laid Zerhouni (ALG) beat Ahmed Saeb (IRQ). Round 1 TKO (punches)

Catchweight 58kg: Omar Al Hussaini (UAE) beat Mohamed Sahabdeen (SLA) Round 1 rear naked choke

Flyweight: Lina Fayyad (JOR) beat Sophia Haddouche (ALG) Round 2 TKO (ground and pound)

Catchweight 80kg: Badreddine Diani (MAR) beat Sofiane Aïssaoui (ALG) Round 2 TKO

Flyweight: Sabriye Sengul (TUR) beat Mona Ftouhi (TUN). Unanimous decision

Middleweight: Kher Khalifa Eshoushan (LIB) beat Essa Basem (JOR). Round 1 rear naked choke

Heavyweight: Mohamed Jumaa (SUD) beat Hassen Rahat (MAR). Round 1 TKO (ground and pound)

Lightweight: Abdullah Mohammad Ali Musalim (UAE beat Omar Emad (EGY). Round 1 triangle choke

Catchweight 62kg: Ali Taleb (IRQ) beat Mohamed El Mesbahi (MAR). Round 2 KO

Catchweight 88kg: Mohamad Osseili (LEB) beat Samir Zaidi (COM). Unanimous decision

French business

France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.

The biog

Age: 46

Number of Children: Four

Hobby: Reading history books

Loves: Sports

Specs

Engine: Dual-motor all-wheel-drive electric

Range: Up to 610km

Power: 905hp

Torque: 985Nm

Price: From Dh439,000

Available: Now

MATCH INFO

Uefa Champions League final:

Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports

Gifts exchanged
  • King Charles - replica of President Eisenhower Sword
  • Queen Camilla -  Tiffany & Co vintage 18-carat gold, diamond and ruby flower brooch
  • Donald Trump - hand-bound leather book with Declaration of Independence
  • Melania Trump - personalised Anya Hindmarch handbag
Company profile

Date started: December 24, 2018

Founders: Omer Gurel, chief executive and co-founder and Edebali Sener, co-founder and chief technology officer

Based: Dubai Media City

Number of employees: 42 (34 in Dubai and a tech team of eight in Ankara, Turkey)

Sector: ConsumerTech and FinTech

Cashflow: Almost $1 million a year

Funding: Series A funding of $2.5m with Series B plans for May 2020

The smuggler

Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple. 
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.

Khouli conviction

Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.

For sale

A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.

- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico

- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000

- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950

THE BIO: Martin Van Almsick

Hometown: Cologne, Germany

Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)

Favourite dessert: Umm Ali with dark camel milk chocolate flakes

Favourite hobby: Football

Breakfast routine: a tall glass of camel milk

The specs

Engine: Dual 180kW and 300kW front and rear motors

Power: 480kW

Torque: 850Nm

Transmission: Single-speed automatic

Price: From Dh359,900 ($98,000)

On sale: Now

THE SPECS

BMW X7 xDrive 50i

Engine: 4.4-litre V8

Transmission: Eight-speed Steptronic transmission

Power: 462hp

Torque: 650Nm

Price: Dh600,000

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