Tesla has reportedly run into a problem with Chinese customs regarding importation of its Model 3, which just recently started arriving in volume in the country.

Chinese media are reporting that the Tesla Model 3 import clearance in China has been suspended by authorities.

Update: A Tesla spokesperson said that the issue has been resolved.

They have reportedly found “irregularities” with the Model 3 (via Reuters):

“The report said the customs authority in Shanghai had found various irregularities in 1,600 imported Model 3 cars, including the improper labeling of the vehicles.”

According to the report, Tesla has been told to stop selling the vehicle until further notice.

It’s still unclear what problem they have found with the vehicle, which is made in Fremont, California, and shipped to China.

We contacted Tesla about the report, but the company hasn’t yet responded to our inquiry.

Update: A Tesla spokesperson said that the issue has been resolved.

“This error resulted from misprinted labels on certain Model 3 vehicles. We have already reached a resolution with Chinese customs, and we are working closely with them to resume clearance procedures on these vehicles. Sales of Model 3 in the country are not impacted, and we continue to deliver Model 3 vehicles that have already been processed.

As we reported last week, the first ship full of Model 3 vehicles for the Chinese market arrived last month.

Tesla is now trying to import as many Model 3 vehicles in China as possible before the end of the month, which is when the import tariffs on many U.S. goods, including electric vehicles, are expected to increase significantly.

In order to avoid trade issues, Tesla is also building Gigafactory 3 in Shanghai to produce Model 3 and Model Y locally.

We recently reported that Tesla is in the process of borrowing $2 billion from Chinese banks to build Gigafactory 3.


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