Tesla is set to recall around 16 lakh cars from China due to software issue with the door-locking systems.
The move comes shortly after the US-based electric car manufacturer faced a dip in sales, caused by a ramp up in sales by Chinese car company BYD, which has emerged as its ferocious competitor.
The recall is the result of issues with Tesla's assisted driving functions and door-locking systems. The company plans to address these concerns through over-the-air (OTA) updates to the car software.
According to the State Administration for Market Regulation, or SAMR, "Starting from now, a total of 1,610,105 imported Model S, Model X, and Model 3, and domestic Model 3 and Model Y electric vehicles with production dates between August 26, 2014, and December 20, 2023, will be recalled."
The recall is specifically linked to problems arising when the automatic assisted steering function is activated.
SAMR expressed concern that drivers may misuse the level two combined assisted driving function, potentially increasing the risk of vehicle collisions and posing safety hazards.
Tesla's heft in the Chinese market is considerable, with the company not only selling but also manufacturing a large number of its cars in the country in Shanghai.
The recall also includes 7,538 imported Tesla models manufactured between October 26, 2022, and November 16, 2023, following the discovery of a "problem with the door unlock logic controls."
This is not Tesla's first encounter with recalls in China.
In 2022, the company recalled over 100,000 cars due to a defect in the rear motor inverter.
China, a leading contributor to global pollution, has been actively supporting electric car sales, including hybrid vehicles. The government has introduced several subsidies with the aim of having the majority of cars in the country running on clean energy by the year 2035.
In the United States, Tesla is bringing back over 2 million cars to make the Autopilot system safer, Investing.com reported. The decision comes after a safety agency in the government raised worries about the system.
On top of that, Tesla is recalling a bit more than 120,000 Model S and Model X cars in the US because there's a chance the doors might open on their own if there's a crash.
Against the backdrop of impending recall, the value of Tesla shares (TSLA) went down by 0.79 per cent before regular trading hours on Friday morning.
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