Tesla is initiating a significant over-the-air (OTA) software update to address safety concerns in over 1.2 million vehicles in China. This recall impacts both imported and domestically produced Tesla models and is being done in response to issues with the rearview camera and electronic power steering systems.
Scope of the Recall
The recall involves two separate issues:
Rearview Camera Malfunction
- Vehicles Affected: 335,716 vehicles, including imported Model S and Model X, and domestically manufactured Model 3 and Model Y vehicles.
- Issue: A potential malfunction with the rearview camera may prevent the display of a reversing image, thereby increasing the risk of collisions. This issue is due to a reverse current during vehicle startup potentially damaging the power components on the main computer board.
- Resolution: Tesla will deploy a software update to correct the camera display.
Electronic Power Steering Failure
- Vehicles Affected: 871,087 domestically produced Model 3 and Model Y vehicles.
- Issue: A software problem that could cause the electronic power steering system to fail, posing a safety hazard.
- Resolution: Tesla will implement a software fix to address the steering issue.
How the Fix Will Be Deployed
Tesla will deploy the software fixes through over-the-air updates, which is a convenient method that does not require vehicle owners to visit a service center. For vehicles that cannot receive the software update remotely, Tesla will contact owners to arrange for free replacements at service centers.
Why This Recall Matters
This recall is significant for several reasons:
- Large Scale: The recall impacts a substantial number of vehicles, around half the fleet Tesla has sold in China, highlighting the scale of Tesla’s presence in the Chinese market.
- Safety Concerns: Both the rearview camera and power steering issues can directly impact the safe operation of the vehicle and increase the risk of accidents.
- Proactive Approach: Tesla is taking a proactive step in addressing these safety concerns through software updates, demonstrating a commitment to vehicle safety.
- Regulatory Compliance: The recall is being conducted in accordance with the guidelines set by China’s State Administration for Market Regulation (SAMR).
Tesla’s Market Position in China
Tesla’s actions in China come at a time of increased competition in the electric vehicle market.
- Market Share: Tesla’s market share in China has seen a slight decrease. In 2024, Tesla accounted for around 10.6% of total battery EV retail sales in China.
- Competition: The company is facing strong competition from Chinese EV makers like BYD, who are rapidly innovating and offering compelling alternatives.
- Production: Tesla’s Shanghai Gigafactory has a large production capacity, and it plays a crucial role in manufacturing vehicles for both the Chinese market and export to other regions. In October 2024, the factory produced its 3 millionth vehicle and exported its 1 millionth in September 2024.
Recent Tesla Recalls
This is not the first time Tesla has issued recalls recently.
- US Recall: Earlier this month, Tesla recalled 239,382 vehicles in the U.S. due to similar concerns regarding loss of the rearview camera image.
- Previous China Recall: In late 2024, Tesla recalled 77,650 China-made vehicles for a software update and 63 imported Model S and Model X vehicles due to a potential airbag issue.
Impact of Recalls
While recalls are a normal part of the automotive industry, they can still affect public perception and brand image. Tesla’s recent history of recalls highlights the complexity of integrating advanced software and technology into vehicles. The recalls also reveal a growing trend of software-related recalls in the new energy vehicle sector. In 2024, software-related recalls in China reached 3.66 million vehicles.
The Importance of Over-the-Air Updates
Tesla’s ability to deploy software updates over-the-air (OTA) is a critical advantage for addressing issues like these quickly and efficiently. OTA updates minimize the inconvenience for owners, allow for rapid deployment of fixes, and ensure that vehicles are always running the latest software version. This capability underscores the importance of software in modern vehicles and their safety.
Summary of the Recall
| Issue | Affected Vehicles | Number of Vehicles | Solution |
| :———————- | :————————————————————————————————————- | :—————– | :————————– |
| Rearview Camera Failure | Imported Model S, Model X, and Domestically Manufactured Model 3, Model Y | 335,716 | Over-the-Air Software Update |
| Power Steering Failure | Domestically Manufactured Model 3, Model Y | 871,087 | Over-the-Air Software Update |
Conclusion
Tesla’s recall of over 1.2 million vehicles in China demonstrates the company’s commitment to addressing safety issues proactively. By using over-the-air software updates, the company is able to quickly resolve potential safety hazards with minimal impact on its customers. While this recall is significant, it also underscores the increasing importance of software in modern vehicles and the growing trend of software related recalls in the automotive industry.
