Ilon Musk has a problem with Tesla

According to the company, the defective cars are equipped with a bonnet latch manufactured in China by Magna Closures Co Ltd. About it writes Reuters.

To reduce the cost of recalling cars Tesla has started to roll out wireless software updates. The updated software detects an open bonnet and alerts drivers to the situation.

This is Tesla's most massive recall since December 2023. Six months ago, 2.03 million vehicles were recalled, which is virtually almost all Teslas on US roads.

Likely due to the massive vehicle recalls, Tesla's profits fell 45% in the second quarter of 2024. The company's net profit fell 45% to $1.48bn, while revenue from car sales fell 7% to $19.9bn.

This is the fourth consecutive quarter of decline. At the same time, the company's total revenue rose 2% to $25.5bn, which exceeded market expectations. However, this did not prevent Tesla shares from falling by almost 8% after the close of trading.

At the same time in June, Chinese brands captured 11 per cent of the European electric car market. In total, Chinese brands registered more than 23,000 electric vehicles across the EU during the month, the highest ever.

Chinese carmakers are rushing to roll out electric car production in Europe to avoid new duties. Tensions between Beijing and Brussels risk escalating into a trade war.