Tesla forced to recall 3M vehicles over 'hidden' car feature that poses 'safety hazard'

Xpeng (XPEV) stock fell 3.5% to $11.77 after Q2 2026 earnings missed estimates, with a net loss of RMB1.29 per share and revenue of RMB19.74 billion. Despite a 8% YoY revenue growth and 51% sequential increase, investors focused on the shortfall. The company's robotics unit raised $900 million, but it did not offset the earnings disappointment. Broader market declines also contributed to the sell-off.

XPENG's robotics division raised over $900M in its first funding round, aiming to mass-produce its IRON humanoid robot by year-end. The company plans initial deployment in showrooms and factories, with commercial deliveries in 2027. XPENG reported a 17.6% revenue decline in Q1 and sees robotics as a future revenue driver.

Tesla is recalling nearly 3 million vehicles in China, including 2.9 million domestically-made Model 3 and Model Y cars, due to interior door handles that may hinder emergency exits. The recall begins Sept. 25. Additionally, Tesla is recalling 46,000 imported units of Model 3, X, and S. Other Chinese automakers, including Xiaomi, XPeng, Geely, and Leapmotor, are also recalling vehicles for similar issues. The recalls align with China's plan to ban hidden door handles by 2027.

Elon Musk claims SpaceX and Tesla will surpass Wall Street's five-year revenue growth forecasts. SpaceX's revenue grew 92% YoY to $7.8B in Q2 2026, while Tesla's revenue rose 26% YoY to $28.24B. Analysts project SpaceX's revenue to surge 2,090% and Tesla's to increase 119% over five years. However, Musk's past predictions have often been delayed, raising investor skepticism. Both companies' stocks dropped after recent earnings due to high capital expenditures.

Tesla is recalling 2.98 million vehicles in China due to safety concerns over hidden door handles, which may be difficult to operate in emergencies. The recall follows fatal crashes involving Xiaomi EVs. Tesla will add warning labels and issue a software update. China plans to ban hidden door handles by 2027. Other affected brands include XPeng, Xiaomi, and Geely.

Xiaomi unveiled the Xring O3 chip, its second in-house smartphone processor, aiming to strengthen its supply chain. TSMC will manufacture the chip using 3-nanometre technology, according to sources. The chip may power Xiaomi's upcoming folding phone, with shipment targets of 200,000-300,000 units. Xiaomi's Xring O1 chip has surpassed 1 million cumulative shipments across devices. Xiaomi and TSMC did not comment on the specifics.