U.S. electric car maker Tesla will recall a total of 3,183 Model X vehicles in China over safety risks, according to China's market regulator.
Filed by Tesla Auto Sales (Beijing) Co., the recall will begin on June 7, and involves part of the imported Model X cars made between April 15, 2016, and Oct. 16, 2016, according to a statement posted on the website of the State Administration for Market Regulation.
When exposed to corrosive environment like road salts, the bolts used to fix the steering gear motors on the gear housing may be corroded and fracture, which may cause the vehicles to lose power steering assist accordingly, posing saftey risks, said the statement.
The company said it will replace the defective parts free of charge.
Automaker Volkswagen has offered 830 million euros as a settlement for owners of diesel vehicles that used software to mask excessive emissions.
The company said Friday it was making the offer after talks broke down with a German consumer association that had been negotiating for a deal over fees for the plaintiffs' attorneys. It said its offer reflected what had already been negotiated.
The VZBZ consumer association said that the settlement talks failed because Volkswagen was unwilling to set up what it called a "transparent, trustworthy and secure" way of resolving the claims.
In 2015, U.S. regulators caught Volkswagen using software that turned emissions controls off once the car had passed emissions tests. The company has paid out more than 30 billion euros ($33 billion) in fines, settlements and recalls.
Tesla priced its second offering of stock at $767 apiece Friday.
An announcement Thursday that Tesla would put an additional $2 billion worth of stock on the market surprised almost everyone.
Just two weeks ago, CEO Elon Musk said the company had enough cash to fund its capital programs and that it didn't need to raise any more money.
But Tesla is taking advantage of seemingly insatiable demand for its stock. Tesla shares have almost doubled since the start of the year, and it's quadrupled since June.
That demand continued to surge Thursday, even though issuing additional company shares can dilute the value of those already on the market. Shares closed up another 5%.
With a couple of hours before the opening bell, shares of Tesla Inc. are essentially flat in light trading.
Growth ground to a halt at the end of the year in Germany, Europe's largest economy, as manufacturing remained in a slump and exports fell.
The flat reading underlines the challenge facing the broader eurozone economy as it struggles against headwinds from the U.S-China trade dispute and Britain's departure from the European Union.
The state statistics agency said Friday there was zero growth in the fourth quarter and a mediocre 0.6% increase for the whole year. The figures did not change the disappointing reading for the entire eurozone of 0.1% growth during the fourth quarter.
Germany's troubles are a central problem for the 19-country eurozone economy and the European Central Bank, which is trying to stimulate flagging growth and inflation with negative interest rates and bond purchases with newly printed money.
Germany has been a manufacturing and export champion in recent years but those areas have been sluggish. Consumer spending and services businesses have held up better and kept the country out of recession.
The three biggest economies in Europe all stagnated or shrank in the last three months of the year — number 2 France saw output contract, albeit by a modest 0.1% while heavily indebted Italy shrank 0.3%.
Carsten Brzeski, chief economist at ING Germany, said recent hopes for a modest upswing were looking a little premature at this point.
"In general, the German economy remains stuck between solid private consumption and a paralyzed manufacturing sector," he said in a note.
Slowing global trade and the uncertainty caused by the U.S.-China conflict over trade have been one headwind. Another is structural change in industry, particularly the auto business, where companies must sink billions into developing electric cars and new services based on smartphone apps, both to meet regulatory pressure for lower greenhouse gas emissions and to head off competition from new entrants from the tech industry.
Shares rebounded in Asia on Friday after an early sell-off, though Tokyo's benchmark declined as investors reacted to reports of a growing number of cases of a new virus in Japan and China.
The Nikkei 225 fell 0.6% to finish at 23,659.14. Australia's S&P/ASX 200 gained 0.4% to 7,130.20. South Korea's Kospi advanced 0.5% to 2,244.82 and Hong Kong's Hang Seng advanced 0.4% to 27,847.53. The Shanghai Composite index gained 0.3% to 2,915.83.
India's Sensex inched down 0.1% to 41,422.35. Shares were higher in Taiwan but mixed in Southeast Asia.
Investors had largely set aside worries about the economic impact of the virus outbreak for the past two weeks. Markets rallied this week partly when the number of new cases appeared to be slowing. But those hopes were dashed by sharp increases in both the number of cases and newly reported deaths Thursday after the hardest-hit province of Hubei began counting doctors' diagnoses without waiting for confirmation laboratory results in hopes of getting patients treated faster.
In Japan, concern rose after the government reported another case, a Japanese man in his 70s, a day after it counted its first death from the virus. Japan now has 252 confirmed cases, including 218 from a cruise ship that has been quarantined in Yokohama. Officials said there were signs the virus was spreading within the local population.
Overnight on Wall Street, the S&P 500 index dropped 0.2%, to 3,373.94 and the Dow Jones Industrial Average slid 0.4% to 29,423.31. The Nasdaq edged 0.1% lower, to 9,711.97. The Russell 2000 index of smaller company stocks rose 0.3% to 1,693.74.
The virus has added a whole universe of uncertainty to the outlook for many industries.
"We're in a data-dearth period in the sense that we're not really going to know fully the effects of the impact of that on Asian and Chinese growth, as well as global growth, for at least several weeks," said Lisa Erickson, head of traditional investments at U.S. Bank Wealth Management. "You're just going to see some back-and-forth movement (in the market) until that time."
The reclassification of the COVID-19 cases in Hubei brought a huge increase in the global tally, complicating efforts to understand the trajectory of the outbreak.
But Stephen Innes, the chief market strategist at AxiCorp, said he believes the economic impact from the virus outbreak would likely be limited and the disease might be contained by March.
"The market impact was little more than a pause in the general bullish upward trend rather than risk-off," he said, referring to the reaction to the higher case numbers.
Businesses have already been hurting due to the outbreak and more of them are warning that the effects will linger through the year.
Organizers of the world's biggest mobile technology fair cancelled the event, set to take place in Spain, because of health and safety concerns. Europe has had a scattered number of cases, mostly connected to Chinese travel.
Travel-related companies fell broadly Thursday, shedding some of their gains from earlier in the week. Airlines helped pull industrial sector stocks lower. United Airlines fell 1.5%.
MGM Resorts International, which gets about 20% of its revenue from the gambling haven of Macau, pulled its profit forecast for 2020. The stock lost 5.5%. Cruise line operator Carnival slid 2%.
Technology and health care stocks were among the biggest decliners, along with companies that rely on consumer spending. Cisco Systems fell 5.2%, Mylan slid 2.3% and Hanesbrands dropped 2.6%.
Household goods makers, utilities, real estate companies and communication services stocks notched gains.
Fashion company Ralph Lauren warned that the viral outbreak cut into fourth-quarter sales by an estimated $55 million to $70 million. The stock fell 0.6%.
Alaska Air Group bucked the trend, adding 1.5% after the airline said it will cooperate more closely with American Airlines on West Coast service. The airlines asked for government permission to expand revenue-sharing to cover international flights in Seattle and Los Angeles.
Benchmark crude oil rose 10 cents to $51.52 a barrel in electronic trading on the New York Mercantile Exchange. It rose 25 cents to settle at $51.42 a barrel on Thursday. Brent crude oil, the international standard, was 5 cents higher at $56.39 a barrel.
The dollar was little changed but inched down to 109.81 0 Japanese yen from 109.82 yen on Thursday. The euro weakened to 1.0838 0 from $1.0843.