Some buyers said the electric Lightning did not meet expectations, and Ford has slashed its production plans for the pickup because sales are lagging.
Chastened by a series of economic downturns that punished the hospitality industry, state leaders are working to broaden the economy.
The vehicles were recalled because the font size on a warning lights panel was too small. Tesla will address the issue with a software update.
The company’s board of directors will now decide whether to appeal the decision, change where Tesla is incorporated or negotiate a new pay package.
Shareholders had sued, arguing that Mr. Musk’s compensation — which helped make him the world’s richest person — was excessive.
Hefei has led the country in making electric vehicles and other tech products, but it still has not escaped a nationwide housing crisis.
Shares in Elon Musk’s electric vehicle maker fell sharply after the company delivered lackluster quarterly results and declined to give full-year guidance.
Quarterly earnings soared from a year earlier after the company booked a tax benefit, but increased competition and a price war took a toll, the electric-car maker said.
In freezing temperatures, the batteries of electric vehicles can be less efficient and have shorter range, a lesson many Tesla drivers in Chicago learned this week.
Elon Musk, the electric car company’s chief executive, said he would “build products outside of Tesla” unless the board raises his stake to 25 percent.
The rental car company blamed the sharp drop in the value of electric vehicles and higher repair costs for its decision to sell 20,000 cars.
The recall follows a similar move by the company in the United States to upgrade the cars’ Autopilot feature.
The leading electric-vehicle maker also drew buyers eager to take advantage of government incentives that will be harder to get in 2024.
Sales by BYD, the country’s dominant automaker, topped 3 million last year, including 1.6 million fully battery-powered cars in a sign of China’s rapid growth in EVs.
Workers seeking a collective agreement from the automaker say they are pushing for their rights, but car owners see them as taking the fight too far.
Purchases of popular models like the Tesla Model 3 and the Ford Mustang Mach-E may no longer entitle buyers to tax savings because the cars do not meet tougher sourcing requirements.
Federal regulators said the automaker had not done enough to make sure that drivers were paying attention while using Autopilot.
Under pressure from federal regulators, the company has agreed to recall two million cars to update its driver-assistance system. The cars will be updated over cellular networks.
The automaker began issuing software updates on Tuesday following a lengthy investigation by National Highway Traffic Safety Administration.
Ford and other automaker have had to readjust their electric vehicle production plans because sales have been weaker than they had expected.