Tesla recalls more than 80,000 cars in China over software and seatbelt issues

Tesla is recalling more than 80,000 cars in China. Investors will be watching to see if there will be any reputational damaged to the U.S. giant.

More than 80,000 cars are being recalled in China due to software and seatbelt issues.

More than 67,000 imported Model S and Model X cars are being recalled by the U.S. electric car giant.

The batteries in these models are affected by a software issue. The software on these vehicles will be upgraded without cost.

The Model 3 cars are being recalled due to a seatbelt issue as well as 2,736 imported cars.

The seatbelts on the cars will be checked byTesla.

When contacted by CNBC, the company was silent.

There is a chance that the recall will have a negative effect on the company's stock price in China. The market is more competitive with domestic competitors like BYD.

"Recalls are always costly and often get amplified in a way that can be reputationally damaging."

It can be managed if they get out in front of it.

China is an important market. A record number of China made cars have been sold by the company recently.

Xpeng, Nio and Li Auto are ramping up new car releases in a bid to challenge the U.S. electric automaker's dominance in China.

The price of the Model 3 and Model Y cars in China was slashed last month due to higher material costs.

It is not the first time that a car has been recalled. More than 100,000 cars were recalled due to an overheating problem.

CNBC's Sam Vadas made a contribution to the report.