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Tesla Blames COVID-19 Impact For Model 3 Hardware Botch In China, Promises Free Replacement

Tesla Inc (NASDAQ: TSLA) is facing the ire of Chinese customers due to issues with its domestically made Model 3 electric vehicles.

Benzinga · 03/04/2020 15:54

Tesla Inc (NASDAQ: TSLA) is facing the ire of Chinese customers due to issues with its domestically made Model 3 electric vehicles.

Free Replacement For Model 3 Flaw

Some customers in China complained that hardware in their newly delivered Model 3 vehicles was the 2.5 version as opposed to the 3.0 version promised by the company.

Responding to the complaints, Tesla issued a statement in its Weibo account, explaining the anomaly was due to supply issues amid the COVID-19 outbreak.

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The automaker said it will offer free upgrades once Hardware 3.0 units become available. Model 3 customers can book appointments with a Service Center for a free placement, Tesla said in the statement.

Tesla resumed production in full swing at its Shanghai Gigafactory Feb. 10 following disruptions in the wake of the COVID-19 outbreak.

The HW2.5 chip and HW3.0 are identical in driving experience and safety with respect to normal EVs, according to Tesla.

The upgrade is significant only in vehicles with a full self-driving package, and these vehicles have been rolled out with the upgraded hardware, the statement said.

Problem With Imported Teslas?

Some customers have also complained that imported Model 3 vehicles are also found with hardware inconsistent with configurations they had ordered, Chinese National Business Daily reported.

"Currently, the store only got the notice to change HW3.0 chip for car owners of China-made Model 3 for free, not including the imported ones," the NBD reported, citing a sales person.

Tesla shares were up 0.36% at $748.17 at the time of publication Wednesday.

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Photo courtesy of Tesla.