Tesla Announces Recall of 1.68 Million Vehicles in China
Tesla's recall in China is divided into three parts: 1,683,627 vehicles in August 2024, 871,087 vehicles in January 2025, and 334,894 vehicles. The State Administration for Market Regulation (SAMR) announced on August 6, 2024, that it would recall certain imported Model S and Model X vehicles, as well as domestically produced Model 3 and Model Y vehicles. The defect involves an issue with the front trunk lock detection, which could cause the front trunk to open while driving if the vehicle does not recognize that it is not locked. On January 24, 2025, 871,087 domestically produced Model 3 and Model Y vehicles will be recalled due to a software issue with the electronic power steering system, including vehicles produced between January 3, 2022, and September 23, 2023. Additionally, 334,894 vehicles will be recalled on the same day due to a rear camera issue. Tesla plans to fix the defects via OTA updates, which allow for remote software updates without bringing the vehicles into service centers. Market reactions are mixed, with concerns that repeated recalls could impact brand trust. However, some analysts believe that the impact of the recalls on sales and operations will be limited.
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