(Yicai Global) Dec. 6 -- Tuopu Group’s shares plunged after the Chinese auto parts supplier said a defect with one of its products led to the recall of over 20,000 Tesla electric cars. 

Tuopu’s stock price [SHE: 601689] closed 4.7 percent down today at CNY54.49 (USD8.55), after earlier sinking by as much as 5.2 percent. 

The recalled products were used only in Tesla’s Model Y, Ningbo-based Tuopu said in a statement yesterday, adding that the recall is not significant because the defect ratio is between 0.2 percent and 1 percent. It will not impact operating results, the firm said. Correction and improvement of related production lines has already been completed, Tuopu added. 

Tesla is recalling 21,599 Model Y vehicles made in China between Feb. 4 and Oct. 30 due to supplier product issues, the State Administration for Market Regulation said in a statement on Dec. 3. On that day, Tuopu’s shares closed down 8.9 percent at CNY57.20, while the EV maker’s stock [NASDAQ: TSLA] ended 6.4 percent lower at USD1,025. 

A partner of Chinese carmaker Topper told Yicai Global that the parts Tuopu supplies to it are different from those to Tesla, adding that the firm did not encounter similar problems.  

Tesla has problems with product standard identification, which is why it allows sub-standard products to enter its supply chain, a senior auto industry analyst said. It also recalled about 2,800 EVs in the US due to another suspension-related issue last month. 

To reduce production costs in China, Tesla has localized more than 95 percent of its supply chain.

Tuopu develops and makes auto power chassis systems, trim systems, and intelligent driving control systems. Its partners include international manufacturers Porsche, Audi, BMW, Mercedes-Benz, and Volkswagen, and domestic carmakers Nio, Xpeng Motors, WM Motor, BYD, and Geely Automobile Holdings.

Editor: Futura Costaglione