Elon Musk takes hit as China officially ban crucial feature on all Tesla cars
The ban is set to affect all EVs in China
Elon Musk takes a hit as China officially bans a crucial feature on all Tesla cars.
Over recent years, Tesla has faced relentless criticism from customers, investors and experts alike.
Some tech YouTubers have ditched their Tesla products for alternatives, while other customers have boycotted the brand entirely over CEO Elon Musk's controversial political stances.
For the past year, Musk's priorities have been more centred on his role at DOGE and serving as President Trump's 'first buddy,' leading some investors to advise him to step down from his executive position.
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More recently, the electric car company promised Musk a pay package worth $29 billion. If certain performance targets are met, this would boost Musk's wealth to around $350 billion, according to the Bloomberg Billionaires Index, maintaining his position as the world's richest person and potentially the world's first trillionaire.
Now, China may have just thrown a spanner in the works for Tesla after a new announcement could complicate the company's future there.
China's Ministry of Industry and Information Technology has released new draft regulations requiring all vehicles weighing less than 3.5 tons to include interior and exterior door handles with mechanical emergency releases, as reported by the outlet Autoblog. Enforcing this new rule will effectively ban all retractable EV door handles on new cars released in the country.
Every Tesla model features these retractable door handles, which means that if Musk wants his company to keep operating in China, it has about a year to start manufacturing cars with a different handle.
The problem is that China represents one of Tesla's most important markets. Being forced into this redesign could cause financial burdens and potentially damage the company's stock valuation.
The ban is expected to take effect on 1 January 2027.
Meanwhile, current evidence shows that the new rule would reflect a good safety measure, as numerous cases detail that owners couldn't locate or operate them during accidents. In fact, one Bloomberg analysis found that 15 auto deaths were linked to Tesla doors failing to open.
Although China's ban will impact all EV companies, including domestic manufacturer BYD, no company will likely be more affected than Tesla.
Tesla's door handle troubles might not end with China either.
US regulators are also investigating safety concerns related to Tesla's flush-mounted electronic door handles, following reports from owners unable to enter or exit their vehicles due to battery power loss.
In some cases, first responders had to break car windows to reach children trapped inside Tesla vehicles.