Reviewed by Gotrade Internal Analyst
Jakarta, Gotrade News - Tesla, Inc. is facing fresh pressure after Chinese regulators announced plans to fully ban electric door handles starting early 2027. This policy forces EV makers to swap out their futuristic designs for manual mechanisms for safety reasons.
The market reacted immediately, with Tesla's stock price dipping 2 percent during Monday's trading (Dec 29). Investors are currently weighing the potential extra costs of shifting production lines in the world's biggest auto market.
Key Takeaways
- China mandates mechanical backups on car doors starting 2027 following a series of fatal incidents.
- Tesla stock corrected 2 percent, though Year-to-Date (YTD) performance is still up 21 percent.
- This regulatory change could shift Tesla's manufacturing standards globally for efficiency.
According to a draft rule from China’s Ministry of Industry and Information Technology, vehicles under 3.5 tons must have internal and external door opening mechanisms that function even when the power is out.
A report from Carscoops mentions this decision was triggered by a pattern of fatal crashes where passengers were trapped because doors failed to open after a collision.
Impact on Global Design and Market Performance
This rule directly hits popular models like the Tesla Model 3 and Model Y, which feature flush or hidden door handle designs. While these designs are claimed to boost aerodynamics, data shows the energy savings are negligible compared to the safety risks involved.
Watcher Guru reported that on top of regulatory hurdles in China, Tesla sales in the EU have also seen a drop in recent quarters.
However, Tesla's stock position remains generally solid, climbing 21 percent this year and trading above its 200-day moving average.
Wall Street analysts are currently split between optimism for the Robotaxi project and caution regarding EV sales fundamentals.
Morningstar remains positive on Tesla's autonomous vehicle testing progress, expected to launch widely in 2026. Conversely, Morgan Stanley recently downgraded Tesla to Equal-weight, signaling a more cautious stance on the company's short-term prospects.
Given China's position as the largest car exporter, this rule change will likely force a design tweak for Tesla's global market to streamline production costs.
Reference:
- Watcher Guru, Tesla (TSLA) Stock Slides 2% On China Ban. Accessed on December 30, 2025
- Carscoops, China Is Banning Tesla-Style Door Handles. Accessed on December 30, 2025
- Featured Image: Shutterstock
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