Stock Market Today, Aug. 21: Tesla Gains on Nevada Robotaxi Permit Approval

Tesla is recalling 2.98 million vehicles in China, including Models 3, Y, X, and S, due to door handle safety risks. Chinese authorities also announced recalls from other carmakers like Xiaomi, Leapmotor, Geely, and XPENG. The recalls follow planned regulations banning hidden door handles, which could hinder escape in emergencies. Tesla will address the issue with software updates.

Tesla (TSLA) stock rose 5.1% on Aug. 21, 2026, after gaining approval for 5,000 robotaxis in Las Vegas and announcing a European debut for its electric semi truck. The S&P 500 and Nasdaq Composite each gained 0.4%.

China is recalling 4.3 million vehicles from 11 automakers, including 2.98 million Tesla cars, due to concerns about emergency mechanical releases. Tesla's recall involves warning labels and a software update to lower windows post-collision. The recall is the largest in China's history and comes ahead of a 2027 ban on hidden door handles.

Tesla (TSLA) and SpaceX (SPCX) are investing $16.8B in a semiconductor plant, Terafab, with Intel. The project aims to secure chip supply, reduce geopolitical risks, and save costs. Success could improve their risk profiles and stock performance, but challenges remain.

Tesla and eight other automakers are recalling about 4.3 million vehicles in China due to concerns about electronic door handles, which may be difficult to open in emergencies. The handles, popularized by Tesla, are designed to sit flush with the door. China has increased oversight of the EV industry, and regulators in the U.S. and Europe are considering new safety standards. Tesla has not yet announced recalls in the U.S. or Europe.

Tesla is recalling nearly 3 million vehicles in China to address hidden emergency door releases, joining 10 other automakers. The recall includes installing warning labels and software updates. China will ban hidden electronic door handles starting in 2027, and U.S. regulators are investigating Tesla's door-latching system.