China demands answers from Tesla after downgrade of chips in Model 3 cars

China demands answers from Tesla after downgrade of chips in Model 3 cars

- Chinese officials are demanding answers from Tesla after reports of outmoded car chips surfaced online

- Owners of the affected vehicles are meanwhile consideration a class-action suit with damages pegged at about three times the cost of the cars

- The Chinese government has meanwhile ordered Tesla to deal with the issue as a matter of urgency

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The Chinese government is demanding answers from Tesla Inc. after the company downgraded the computer chip in some of its Model 3 cars.

Owners of such cars in China reportedly detected the anomaly and it sparked an outcry.

Tesla, however, apologised and explained that the coronavirus had slowed down its production process.

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This, per a Business Insider report, compelled the company to resort to older models of the chips.

Tesla executives have meanwhile been hauled before the Ministry of Industry and Information Technology in China to answer questions.

As part of immediate measures, Tesla has been asked to rectify the problem according to its regulations.

Following the outrage, Tesla explained that the old chip made did not affect the driving experience in any way.

The company also offered to upgrade the chips in the cars in dispute but the car owners have little interest in the offer.

Information available shows that they are currently considering a class-action lawsuit which could lead to compensation valued at about three times the cost of the vehicles.

Tesla’s officials were not immediately available for comment when contacted.

In other news, Tesla Inc’s founder, Elon Musk, has reacted to a purchase of an electric Porsche by Microsoft founder, Bill Gates.

Musk reportedly tweeted that Gates has been “underwhelming” after news of the purchase became public. Gates revealed the purchase of the Porsche Taycan in the course of an interview with YouTuber, Marques Brownlee.

He is reported to have discussed the state of electric cars in general, noting that their range still falls below that of traditional gasoline vehicles.

Consumers may experience "anxiety" about this when buying one, he said. understands that the car’s price starts at about $103,000.

Musk’s tweet surfaced after an unofficial Tesla news account expressed disappointment with Gates over his decision, Business Insider. reports.

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