Tesla May Have Nearly 4,700 Model 3 Cars Held by China Customs

(Bloomberg) -- Tesla Inc. may have more Model 3 sedans held up at Chinese ports over labeling issues than previously reported, according to a state television broadcaster.

A total of 4,678 cars that have arrived at Chinese ports may have issues including misprinted or missing local-language labels, China Central Television said. The flaws first surfaced earlier this week when Caixin reported that ports had suspended customs clearance of Model 3s due to problems with about 1,600 cars.

Tesla is fixing the labels under the supervision of customs officials, who will resume clearances after they pass review, CCTV said. The company said in a statement Tuesday that sales of the Model 3 in China aren’t impacted and that it continues to deliver sedans that have already been processed.

Read more on Tesla’s rush to ship Model 3s to China

The customs holdup is a setback to Chief Executive Officer Elon Musk’s crucial extension of the markets where Tesla sells the Model 3, the company’s least-expensive vehicle. The carmaker also started deliveries of the sedan in Europe this quarter.

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