Tesla to Issue Software Update for 435,000 Cars in China Affected by Rear Light Issue

On Thursday, the Chinese market regulator announced that Tesla will be recalling over 435,000 cars in China and providing software updates to address a rear light issue.

China's State Administration for Market Regulation has reported that a software defect may be preventing the rear lights from illuminating on a total of 142,277 Model 3 sedans and 292,855 Model Y vehicles.

Regulators have expressed concern that this could be a potential danger to those behind the wheel.

In the past month, Tesla has issued a recall of over 321,000 vehicles in the United States due to a similar issue.

Tesla will be able to send out software updates remotely in order to resolve any issues.

Investors may be wondering how to capitalize on the beaten-down EV stocks. According to Evercore ISI, one of these stocks could potentially double in value over the course of the next year.

Bernstein analysts have determined that Tesla's stock valuation is more reasonable, but they still do not recommend buying it.

According to Morgan Stanley, a shift in Twitter sentiment is necessary to prevent Tesla's market value from dropping to $500 billion.

Tesla is facing a number of technical difficulties in China. Last week, the American electric car manufacturer declared a recall of over 80,000 vehicles due to seatbelt and software problems.

Tesla has a major presence in China, with a production factory located in Shanghai. Recently, the company has seen a surge in sales of cars made in China.

Elon Musk's automaker is facing increased competition from domestic companies such as BYD, which is backed by Warren Buffett, as well as startups like XPeng, Nio, and Li Auto. In 2023, electric carmakers are expected to launch a variety of new vehicles.

In October, Tesla reduced the cost of its Model 3 and Model Y vehicles in China after increasing them earlier in the year due to increasing material expenses.