Tesla Has Some New Trouble in China Over Downgraded Model 3 Chips
Tesla has found its way into some new trouble among the Chinese government. When the electric vehicle manufacturer failed to outfit some Model 3’s with the latest computer chip, people were angry. The issue resulted from a problem with Tesla’s supply chain in China. Tesla initially owned up to the snafu and assured buyers to remedy the situation. Tesla’s response pleased many Chinese buyers.
However, on Tuesday, March 11th, China’s Ministry of Industry and Information Technology informed Tesla that they needed to make things right. The ministry referred to a set of strict regulations surrounding electric vehicles in China, reports Business Insider. Mixed information on the difference between the two chips leads some to believe that the upgrade may be negligible.
Upon the initial discovery of the error, Tesla did assure buyers that their Model 3’s would be outfitted with the latest microchips. Nevertheless, some Chinese buyers have taken to filing class action lawsuits. Many of the lawsuits are quite severe, demanding some form of monetary compensation.
Even though Tesla’s supply chain was disrupted in China due to coronavirus fears, the company has since reopened its Shanghai Gigafactory. According to their initial promises, Chinese buyers who purchased a Model 3 with an older chip model can expect a free hardware upgrade as recompense. In any case, the Chinese authorities plan to keep Tesla accountable, especially as the electric vehicle manufacturer plans to continue production on Chinese soil.