China Halts Tesla Model 3 Customs Clearance

China Halts Tesla Model 3 Customs Clearance

Tesla Inc said on Tuesday that China's customs authorities have accepted the electric carmaker's plan to resolve problems with the clearance of its Model 3 sedans that centered around misprinting of labels.

The first shipment of Model 3 cars arrived in Shanghai on February 22, and deliveries started at the end of the month, according to media here reports.

As a result, GAC issued a notice forbidding companies from selling any Tesla Model 3 already in China, for the objective of further inspection. New Model 3s entering China will also be thoroughly checked.

Tesla pointed the blame at "incorrect settings on its printers" and "workers' poor operation".

The electric vehicle (EV) maker is now working with the Chinese government to find a solution to the customs clearance procedures and the issues with labeling, Caixin reported.

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It comes just weeks after Tesla began shipping the vehicle to China, which is the world's biggest auto market and is key to the company's future.

"Sales of Model 3 in the country are not impacted, and we continue to deliver Model 3 vehicles that have already been processed".

Tesla made a profit in the second half of its financial year but chief executive Elon Musk said the firm is forecast to report a loss in the first quarter of this year. "Model 3 was designed from the outset for a global market, and shares more than 98% of its parts in common across its regional variants".

Tesla said it had "already reached a resolution with Chinese customs". Initially, the Model 3 release was scheduled for March.

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