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Showing posts from June, 2021

Tesla Isn't The First EV Maker to Initiate A China Recall

Tesla's China (and to a smaller extent US operations) have faced a surfeit of bad news recently. Multiple global and domestic media publications over the last few days have reported that Tesla will recall 285K Model 3s, most of which were domestically produced, over a fault that could cause the vehicle to unexpectedly activate its cruise control system. Tesla users won't even have to visit a dealer to fix the problem; all they need to do is download a software update. (An article about Tesla's recall from the Wall Street Journal is reposted at the bottom of this post) A few months ago, the firm faced quality complaints as well as allegations that the cameras and sensors embedded in the vehicles could be used for malicious surveillance. While these headlines certainly look bad, cumulatively these incidents are unlikely to hurt the firm's prospects in the Chinese market over the long term, unless the stream of bad news continues and damages public opinion. However, it'

Welcome to Hong Kong Stock Observer

This website focuses on publishing insights related to Chinese equities listed in Hong Kong, Shanghai, Shenzhen, as well as ADRs. Presently the author researches China's auto market, specifically the market for luxury cars and the dealership companies that distribute them. Please refer to the Research Reports section to download the author's latest report on the Chinese auto market.