Tesla recalls more than 21,000 domestically produced Model Y
Suspension casting supplier Tuopu Group issued an announcement yesterday
Yesterday afternoon, in response to Tesla’s recall, Ningbo Tuopu Group, a supplier of Tesla suspension castings, issued an explanatory announcement.
Tesla recall affects Tuopu Group’s share price
On December 3, Tesla (Shanghai) Co., Ltd. announced the recall of 21,599 domestically produced Model Y electric vehicles produced between February 4, 2021 and October 30, 2021 because of the risk of breakage of the suspension steering knuckle. The supplier of Tesla suspension castings is Ningbo Tuopu Group. Affected by this news, on December 3, Tuopu Group’s stock price suddenly crashed and fell sharply, with the largest drop of 10.01% at one time, closing at 57.2 yuan per share, a drop of 8.86%.
On December 4, Wang Mingzhen, the Secretary of the Board of Tuopu Group, responded to the media, saying, “Regarding the recall incident, the company has not obtained any information in advance. The company has already begun to understand the details of the matter and make an assessment of the corresponding consequences.”
On the afternoon of the 5th, Ningbo Tuopu Group Co., Ltd. issued the “Announcement on the Explanation of the Company’s Products Involved in the Customer Recall”.
The announcement stated that individual products were not completely immersed in quenching liquid
According to the announcement, Tesla Inc and Tesla (Shanghai) Co., Ltd. (“Shanghai Tesla”) have respectively submitted recall reports or reports on some Model Y electric vehicles to the U.S. Highway Safety Administration and China’s State Administration for Market Regulation. Record plan.
First, Tesla Inc’s recall report shows that Tesla Inc filed an application with the U.S. Highway Safety Administration on November 21, 2021 to recall some models in the United States whose production dates are from June 16, 2020 to November 10, 2021. Y electric vehicles, a total of 826 units. The reason for the recall is that the steering knuckle may be deformed or broken due to insufficient strength of the steering knuckle, which may cause the suspension link to fall out of the steering knuckle, which may affect the controllability of the vehicle and increase the risk of collision. The report shows that among the 826 Model Y units that may be involved in problems, it is estimated that the proportion of defects is 1%.
Second, on December 3, 2021, the recall plan filed by Shanghai Tesla disclosed on the website of the State Administration of Market Supervision and Administration of China showed that Shanghai Tesla intends to recall the production date from February 4 to February 4, 2021. A total of 21,599 domestically-produced Model Y electric vehicles during October 30, 2021. The reason for the recall is that the strength of the front and rear steering knuckles of some vehicles may not meet the design requirements. The steering knuckle may be deformed or broken during the use of the vehicle, and the suspension link may fall out of the steering knuckle under extreme stress conditions. Affect the driving control of vehicles, increase the risk of collision accidents, and pose safety hazards.
In response to the above matters, the company verified that the steering knuckles for the Model Y electric vehicles involved in the recall were directly supplied to customers by the company. The specific reason for the recall of the products is: due to the insufficient water level of the quenching tank in a heat treatment production line, individual products are not completely immersed in the quenching liquid, resulting in the strength of the knuckle may not meet the design requirements. According to the company’s test results, the probability of defects in this batch of suspicious products is about 0.2%-1.0%. The company’s recalled products only support Model Y models, and do not involve other Tesla models, nor do they involve other customers’ models.
The company sets up a problem handling and response committee
Tuopu Group announced that the company attaches great importance to this recall. The company has completed the rectification and improvement of the heat treatment production line to ensure that the products are fully quenched, and at the same time, the product hardness is 200% tested; the company has provided 132 service centers across Tesla. A testing instrument that identifies risky parts can quickly complete the testing and replace the identified defective products. The company has established a problem handling and response committee to quickly respond to customer needs within 24 hours.
Regarding the impact of this recall on Tuopu Group, the announcement stated that the company is temporarily unable to determine the costs involved in this recall due to the rapid actions of the customer and the fact that the recall has not yet been completed. Based on the estimation of the number of recalls and the defect ratio, the company believes that this recall is a non-significant event and will not have an impact on the annual operating performance, and this event will not have an impact on the company’s business.