Briefing: China customs block Tesla’s Model 3 for improper labels

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Tesla blames misprinted label for China customs hiccup – Reuters

What happened: Tesla said on Tuesday that it has reached a resolution with Chinese customs to resolve the suspended clearance snafu involving its Model 3 imports at all Chinese ports. Shanghai customs authority had found improper labeling on a batch of 1,600 Model 3 vehicles and blocked their release, and Tesla was directed by authorities on Friday not to sell or use the improperly labeled Model 3 sedans that had already been cleared, according to business news organization Caixin. The national customs authority has urged its subordinate bodies to strengthen inspections on other Tesla imports.

Why it’s important: Tesla has stuttered in its inroads to the Chinese market. After slashing prices of its Chinese range last week to attract more customers, the EV manufacturer consequently faced angry customers who had paid the higher price asking for compensation. The US-China trade tensions have raised the price tag for the imported cars in China while domestic rivals, such as Byton and Nio, qualify for government subsidies. The company’s Shanghai factory is under construction with the aim to begin Model 3 production at the end of this year.