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IPFS News Link • China

China Blocks Tesla Model 3 Sales After Suspending Customs Clearance

• https://www.zerohedge.com

Tesla's awful start to 2019 is getting worse, with the latest bad news hitting the company in its most important "growth" market: China. 

Chinese customs have suspended clearance procedures for Tesla's Model 3, according to Reuters which cites Chinese financial publication Caixin. The customs authority in Shanghai found "various irregularities" in 1,600 imported Model 3 vehicles, including improper labeling of the vehicles.



As a result, China has effectively put a block on Model 3 sales, telling Tesla not to sell or use Model 3 vehicles that have already been cleared in the country. Inspectors at ports in China have also been directed by authorities to "step up inspections" of other imported Tesla models and suspend their release if similar problems are uncovered.

This news comes after a sizable fall in Tesla's stock over the last two trading days, as the market continues to digest last Thursday's $35,000 Model 3 unveiling – and the subsequent news that the company blindsided retail employees and investors by their spur-of-the-moment decision to close all of its retail stores.

Investor Alex Chalekian, who manages more than $150 million, said on Twitter: "This was a total 180-degree turn. Tesla had been talking about expanding stores, and all of a sudden they are closing them. To me, this signals a huge financial concern and a possible cash-flow issue for Tesla."


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