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New Developments For Tesla

May 31, 2021 9:36 AM ETTesla, Inc. (TSLA)
Ruerd Heeg profile picture
Ruerd Heeg's Blog
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Since my previous post the most important news for Tesla (TSLA) was that (apparently) it is doing a new recall. It seems Tesla has sending its customers a message related to brake issues. See this tweet and this tweet. Allegedly certain model 3 cars "built between December 2018 and March 2021" and certain model Y cars "built between January 2020 and January 2021" need to be recalled. I suppose many more than a couple of cars need to be recalled, probably nearly all of these cars built in the specified periods. See also this and this tweet for explanation of what might be wrong.

Though this information has not been confirmed by more official sources it is not surprising Tesla wants to do something about the brake issues. In China it is under heavy pressure because of these and other issues. So that this news has not been confirmed is actually a bad thing. It might mean Tesla is not doing anything about these brake issues, probably because it cannot solve them. If Tesla does not solve the many quality issues in China, including the brake issues, it's going to be game over for Tesla in China. Note Tesla is still denying certain information, calling it "false", according to another negative article of the Global Times.

My opinion on the stock is still strong sell.

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Analyst's Disclosure: I am/we are short TSLA.

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