China has paused customs clearance for Tesla Inc.'s Model 3 vehicles following reports of irregularities in 1,600 imported units, according to a financial publication.
According to the report, Shanghai customs identified issues including improper vehicle labeling during inspections. The suspension comes as Tesla accelerates its China market entry amid challenges from U.S.-China trade tensions.
The company has not yet provided a public response to the development. The report cited unspecified sources within the customs authority for the findings.
Reporting by Yilei Sun and David Stanway; Editing by Kevin Liffey
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