As with most Tesla recalls, the software update will not significantly disrupt the company’s business in the short term. However, it’s not a good look for a brand that has had numerous recalls in recent years, including 80,000 in China last fall for software and seat belt problems. Tesla depends heavily on China for revenue — it’s home to the giant Gigafactory Shanghai, which currently produces more than half of the firm’s cars each year. Tesla can’t afford to alienate either customers or officials.
The recall is a setback for Tesla, which has been facing increasing scrutiny in China. In recent months, the company has been fined for misleading advertising and for failing to properly handle customer complaints. The recall could further damage Tesla’s reputation in China, which is a key market for the company.
