China probably suspends customs clearance and sale and use of Tesla model 3 car in the country due to incorrect labeling, according to a report by Chinese news agency Caixin on Tuesday.
According to a report by Reuters, citing Caixin, customs officials in Shanghai reported "various irregularities" in the 1600 Model 3s set for delivery in China, including incorrect car labeling.
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Tesla, whose goal is to increase sales in China, the world's largest market For cars, was set to begin delivering its cheapest car to customers in China this month. It appears that it will now be delayed after the announcement, which came from Chinese customs authorities, Caixin said.
The report added that Tesla has been told not to sell or use any model 3s that have already been cleared by customs.
Chinese authorities also said inspectors have been ordered "to increase the inspection of other imported Tesla models" and block their clearance if similar problems are discovered, Reuters reported once to cite Caixin.
The role out of Model 3 in China was put on an accelerated timeline late last year after the company expressed concerns about the impact of trade tensions between Washington and Beijing. Tesla is also building a $ 2 billion Gigafactory in Shanghai, a move that is believed to be motivated by a desire to avoid the commercial war.
Tesla has cut the price of its Model 3 in China several times over the past few months, with the starting price of the vehicle at 499,000 yuan ($ 74,000).
Tesla did not immediately respond to a request for comment from Business Insider.