According to recent reports, China has halted Tesla Model 3 in terms of customs clearance.

A new article from Reuters sites Beijing-based global media company -- Caixin -- in its report that Model 3 deliveries in China are now at a standstill. According to the press report, China has suspended customs clearance for the all-electric Model 3 for "various irregularities, including improper labeling of the vehicles."

***UPDATE: Seems this potential roadblock is already being cleared. See tweet below:

We hope this "various irregularities" pertaining to the China-bound Model 3 doesn't have anything to do with actual issues with the car. Fortunately, it seems like more of a "paperwork" issue.

China is well-known to be a solid market for EVs. So, it's imperative that Tesla makes huge waves in the country. While we've read and published plenty of reports surrounding the automaker's success in Europe, and especially in regards to recent Model 3 deliveries, we haven't heard much from China. Wedbush Securities analyst Daniel Ives told Reuters:

Selling into China has clear hurdles and this is a reminder of the pitfalls when betting on growth in the region.

The hope is this issue can be smoothed out quickly otherwise it becomes more of a black eye for Tesla and agita for investors.

While the Silicon Valley automaker works to build its Shanghai "Gigafactory 3," Tesla must import all product, which puts it at a severe disadvantage when compared to numerous and growing EV outfits within the country's walls. Moreover, local automakers benefit from incentives, which are not yet available to Tesla.

Caixin reportedly made Tesla aware that it must temporarily refrain from selling its Model 3 in the country. The automaker was also told it cannot "use" any Model 3 sedans, even if they've already cleared customs, which is very unclear. In addition, Chinese customs agents were informed that they must increase diligence when inspecting these Tesla vehicles.

Based on research by Reuters, 1,171 Model 3 sedans have made their way to China. Of those, some 84 have been officially imported thus far.

Source: Reuters

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