On Tuesday, the 5th of March 2019, Tesla Inc. had said that the Chinese customs authorities had accepted the electric vehicle maker’s plan of resolving the problem for clearance of few of Model 3 Sedan that came with misprinted labels.
The news came forth, as earlier in the day, Chinese Media had reported that the Shanghai customs had canceled clearance of a batch of Model 3 sedans. Followed by the reveal of a media report, shares of Silicon Valley billionaire Elon Musk’s Tesla Inc.
had curbed over 5 percent in the early US trading session. While preparing this report, the Tesla shares were down by 1.3 percent at $281.73. Later in the day, citing a resolution with Chinese customs, a Tesla Spokesman said in a statement, “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 Tesla had already turned their eyes off the US market and focused aggressively in the European and Chinese markets for their Model 3 Sedan, pushing a smoother inroad into China had become extremely crucial.
Daniel Ives, a Wedbush Securities analyst said, “Selling into China has clear hurdles and this is a reminder of the pitfalls when betting on growth in the region. ”