China halts Tesla Model 3 sales over mislabeled vehicles

Tesla says "incorrect printer settings" are to blame.

Tesla recently rushed boatloads of its Model 3 sedan to China, but the company would have been better off taking its time. That's because a compliance oversight has resulted in about 1,600 Model 3s being held up in Shanghai Customs.

According to Caixing Global, the General Administration of Customs (GAC) flagged the 1,600 cars after it discovered that some of the Model 3s had no Chinese labels on their brake fluid tanks. The GAC also found that some motor capacities differed from the ones stated by Tesla on its paperwork.

As a result of those inconsistencies, the GAC has issued a nation-wide sales ban on the Model 3 and will also ramp up its scrutiny on all other Tesla vehicles entering the country.

Tesla says the snafu is the result of "incorrect settings on its printers” and "workers' poor operation.” The company is now working with Chinese officials to rectify the situation.