Tesla recalls more than 30,000 cars as sales dip by more than 30 per cent

Australia’s most popular electric car brand is under siege, as it’s forced to recall tens of thousands of cars while battling a sharp decline in sales.

Tesla has recalled almost 35,000 vehicles over a manufacturing defect that could lead drivers to think their bonnet is closed when it isn’t.

The recall notice says the bonnet latch assembly on certain Model 3 and Model Y cars “may not detect when it is opened by the driver and therefore fail to warn the driver of ‘open bonnet’.”

“If the vehicle is driven with unlatched bonnet, it may open abruptly when driving and could result in obstruction of the driver’s view,” the notice says.

The notice warns that the obstructed view “may increase the risk of an accident causing injury or death to road users”.

News of the recall comes as monthly sales figures for July show a huge slump in Australian sales for the US manufacturer, which is under attack from Chinese newcomer BYD.

Tesla is finding the going tough this year. Picture: Thomas Wielecki

July Tesla sales were down 34 per cent on the same month last year. Year-to-date, sales have dipped by almost 13 per cent.

The brand, which had a virtual monopoly on the local market for electric vehicles, is under siege from a raft of sharply priced EVs from new Chinese brands and existing traditional manufacturers such as Hyundai and Kia.

It reacted by slashing thousands of dollars off the price of its vehicles earlier this year. The Model Y is now more than $11,000 cheaper than it was in 2022.

The move has angered existing owners, as it will affect their resale values when it comes time to sell.

Things are unlikely to get any easier for the brand in the coming months as it is hit by a wave of new EVs from Chinese brands including XPeng, Leapmotor and Zeekr.

Affordable EVs such as the BYD Seal are stealing Tesla’s lunch. Picture: Thomas Wielecki

At the same time established brands such as Kia will launch “made-in-China” EVs at far more affordable prices.

The trend mirrors what is happening to Tesla in the United States. Its share of the US EV market has reportedly dropped from roughly 75 per cent to 50 per cent.

Tesla says it will write to those affected by the recall.

The good news for owners is they won’t have to visit a dealership to get the fault rectified, as Tesla will fix the issue through an “over the air” software update.

Tesla sales are dipping in the US as well. Picture: Mark Bean.

The recall applies to Model 3 and Model Y vehicles sold between 2020 and 2024.

Vehicles that have software version 2024.20.3 or later loaded on their car are not affected by the recall.

Tesla says owners can check their software version by tapping “controls” and “software” on the centre screen.

Originally published as Tesla recalls more than 30,000 cars as sales dip by more than 30 per cent