The opening of the Gigafactory in Shanghai is undoubtedly one of the biggest breakthroughs for Tesla in recent years. However, the company is now on the bad side of local authorities and consumers after it reportedly delivered Model 3 vehicles that had old computer chips. To make the issue worse, affected customers claim they were not informed beforehand.
Tesla Model 3 cars in China reportedly shipped with old chips
Tesla’s business in China has so far seen good results, thanks to its apparent good rapport with the government. However, that may dampen anytime soon as consumers complained about the specs changes in their Model 3 cars that Tesla reportedly failed to tell them.
Tesla Model 3 deliveries in China started very early this year. The company did not seem to face any delays in the following months despite the spread of coronavirus, now officially called COVID-19. However, a new issue came to light recently after several Model 3 buyers in China reported they were given a car with an older chip despite being told that the vehicle sports the latest technical specifications.
The issue has since reached China’s Ministry of Industry and Information Technology. The agency required the attendance of Tesla executives in a meeting on Tuesday to address the matter. While some of the complainants thought Tesla has gotten too close to Chinese officials, Nikkei Asian Review reports involved institutions appear to be on the side of the consumers.
Tesla apologizes for unannounced Model 3 downgrades in China
Tesla Model 3 owners noticed the discrepancy earlier this month after seeing that the control chip’s model number on their cars is different from the information sheet they were provided. They were promised to own a Model 3 with the latest model of the chip. Reports have it that the unannounced change was rooted in the COVID-19 impacting the Giga Shanghai operations. The factory was obliged to temporarily close in late January due to the virus outbreak and resumed operations after 10 days.
Tesla has purportedly apologized through a post on the Chinese social media platform Weibo. The company said it is “deeply sorry for the confusion” and insisted that the change in specs will not bring significant differences in the car’s performance.
Tesla also reassured affected users by promising free upgrades once the hardware becomes available. But Nikkei also reported that some affected consumers are resolved on filing a class-action lawsuit against the company.
Featured photo by Marco Verch licensed under Creative Commons 2.0


Trump Orders Section 301 Probe Into EU Tech Fines, Signals New Tariffs
Foxconn Wins First SpaceX AI Server Contract Worth Estimated $52 Billion
Samsung Cuts U.S. Consumer Electronics Jobs as Headquarters Moves to Texas
Trump Administration Monitors OpenAI Incident as Lawmakers Push AI Kill Switch Bill
SpaceX Q2 Earnings on Aug. 4 Set Stage for Historic Insider Share Unlock
US, China to Hold AI Talks Ahead of Xi’s September Visit
Wistron Opens $700M Texas AI Factory to Build Nvidia GB300 Superchips
SpaceX Stock Slump Wipes Out Nearly $700 Billion From Elon Musk’s Paper Wealth
Elon Musk Fuels SpaceX-Tesla Merger Speculation After Earnings Call
Super Micro Computer Stock Jumps 20% After Record AI Orders and Margin Surge
US Investigates Moonshot Over Alleged Use of Advanced AI Chips and IP Theft
Bank of America Says These Overlooked AI Stocks Could Be the Next Winners
SAP Beats Q2 Revenue Estimates as Cloud Backlog and Business AI Demand Drive Growth.
Nvidia Reveals 9.3% Stake in AI Cloud Firm Nebius Following $2 Billion Investment
Intel Stock Slips After Earnings Rally Despite Strong AI-Driven Revenue Growth
Rubio Rejects AI ‘Kill Switch’ Claims as U.S. Defends American Technology Abroad
IBM Q2 Earnings Miss Estimates as Software Growth Offsets Infrastructure Weakness 



