Tesla Recalls Over 1.6 Million Cars in China: Safety Concerns Hit the Market

Tesla is initiating a recall of over 1.61 million vehicles in the Chinese market due to risks associated with the driver assistance system. This follows a recall notice issued in the United States in December last year, citing inadequate measures to prevent misuse of the driver assistance system.

The recall impacts vehicles exported to China and those manufactured locally between August 14, 2023, and December 23, 2023. Around 1.61 million of these vehicles have issues with the driver assistance system, and about 7,500 have safety concerns related to the door lock. Both problems are fixable with an Over-the-Air (OTA) wireless software update.

China, where Tesla has its main factory, is a crucial market for the company. However, local competitor BYD is rapidly increasing its sales, intensifying the competition. Tesla’s electric vehicle sales reached about 480,000 in the third quarter of 2023, while BYD sold 520,000, surpassing Tesla for the first time.