Tesla Stock Fans Just Got Bad News From China

Nine automakers, including Tesla (TSLA), are recalling over 4 million vehicles in China due to door handle safety concerns. Tesla is recalling nearly 3 million vehicles, with its stock falling 4% on Aug. 24. The recall follows incidents where door handles failed during emergencies. Tesla plans to add warning labels and make software updates. Chinese regulators are enforcing the recall, with new rules requiring manual release handles on both sides of vehicles by 2027.

The Nevada Transportation Authority approved Tesla, Waymo, and Uber's Aviari Services to offer driverless passenger rides in Clark County, including near Harry Reid International Airport. Tesla can operate up to 5,000 vehicles, while Waymo and Aviari are capped at 1,000 each. The companies must meet safety and regulatory requirements, including vehicle inspections, insurance, and incident reporting. Some local taxi companies and residents have raised concerns about job impacts and safety.

Tesla plans to unveil its Cybercab production vehicle on September 3, aiming to replace Model Y Robo taxis. The vehicle features no pedals, steering wheel, and scissor-like doors. Tesla has approval for 5,000 robot taxis in Las Vegas, with 2,500 expected within a year, according to the company. The stock is down 23% year-to-date, and the event could serve as a catalyst.

Tesla (TSLA) will unveil its production Cybercab, a two-seat, autonomous vehicle, on September 3 in Austin, Texas. The launch follows Nevada's approval for Tesla and other companies to operate commercial robotaxis. Tesla's stock dropped despite the upcoming reveal, as the company's growth plans hinge on its robotaxi fleet and Full Self-Driving (FSD) software. Tesla received the largest allocation of permits, while Waymo (GOOG, GOOGL) and Uber (UBER) also secured approvals.

Tesla, Xiaomi, Geely, Leapmotor, and Xpeng are recalling 4.3 million cars in China due to safety concerns over electronic door handles. Tesla's recall affects 2.98 million vehicles, starting September 25. Regulators aim to improve safety with stickers and software updates.

XPeng (XPEV) fell 7% after Q2 revenue missed estimates and Q3 guidance disappointed. NIO (NIO) dropped 4% in sympathy. Tesla (TSLA) slid 2%, while Lucid (LCID) fell 1% and Rivian (RIVN) rose 0.7%. XPeng's robotics unit, IRON, raised $900M at a $6.3B valuation with Alibaba and Tencent.