Ok I gave up on teleporting my car using teleport / set location function. It’s completely non working for vehicle pawn.
So I decided to just destroy the actor and reposses it.
This doesn’t solve the fundamental problems, but at least gets me to where I want for now.
I really hope somebody knows the answer on why I can’t use standard teleport for vehicle pawn.
I’ve double checked the teleport and confirmed it that on the same project with a regular character pawn teleport worked.