Tesla is recalling over 1.2 million vehicles in China to address software-related issues that could potentially pose safety risks. The recall, announced by China’s State Administration for Market Regulation (SAMR) on Friday, January 24, 2025, involves a substantial number of both imported and domestically produced vehicles. The issues primarily relate to the rearview camera and the electronic power steering system. Tesla plans to resolve the problems through over-the-air (OTA) software updates, demonstrating their ability to remotely address widespread issues, and for the vehicles that can’t be updated remotely Tesla will contact the users to implement the recall.
Scope of the Recall
The recall affects a total of 1,206,803 Tesla vehicles, split into two main categories based on the specific issues:
Rearview Camera Malfunction
- Vehicles Affected: 335,716 imported Model S and Model X vehicles, along with locally produced Model 3 and Model Y vehicles.
- Production Dates: These vehicles were manufactured between July 16, 2023, and December 14, 2024.
- Issue: A reverse current during vehicle startup could damage the power supply component on the main board of the vehicle’s computer. This can cause the rearview camera to malfunction, potentially leading to the reverse image not being displayed correctly. This malfunction can impair the driver’s field of vision when backing up, increasing the risk of a collision.
- Resolution: Tesla will deploy a software update to version 2024.44.25.3 or later. Vehicles unable to be updated via OTA will be contacted for a free computer replacement.
Electronic Power Steering Issue
- Vehicles Affected: 871,087 locally produced Model 3 and Model Y vehicles.
- Production Dates: These vehicles were manufactured between January 3, 2022, and September 23, 2023.
- Issue: A software problem can cause the electronic power steering system to malfunction, potentially resulting in limited steering assistance.
- Resolution: Tesla will address this issue by upgrading the software for the vehicles to version 2023.38.9 or later.
How Tesla Will Address the Issues
Tesla is utilizing its OTA update capabilities to fix the software issues remotely. This method allows for a quick and efficient resolution for most affected vehicles without requiring owners to visit a service center.
- OTA Updates: The majority of vehicles will receive the necessary software updates via OTA.
- Direct Contact: For vehicles that cannot be updated remotely, Tesla will directly contact the owners to schedule appointments for the required fixes.
- Free Repairs: All necessary repairs, including software updates and parts replacements, will be provided free of charge to the customers.
Previous Recalls
This isn’t the first time Tesla has had to recall vehicles in China due to software issues.
- August 2024 Recall: Tesla recalled 1,683,627 vehicles due to issues with the frunk lid which could potentially lift while the vehicle is in motion, this was also fixed by an OTA update.
- December 2024 Recall: Tesla recalled 77,650 Model 3 and Model Y vehicles produced between September 28, 2021, and November 22, 2024 due to the tire pressure monitoring system warning light not remaining illuminated between drive cycles, which was resolved by an OTA update.
These recalls highlight the ongoing challenge of managing software and its impact on vehicle safety.
Impact of the Recall
This recall is significant as it affects a large portion of Tesla’s fleet in China.
- Market Impact: The recall occurs as Tesla faces increased competition from domestic EV manufacturers in the Chinese market.
- Consumer Confidence: Such recalls could impact consumer confidence, although Tesla’s proactive approach to resolving the issues with free updates may mitigate any negative effects.
- Sales Figures: Tesla sold 93,766 China-made cars in December of 2024, ranking fifth in overall sales. The company is working to maintain market share in the face of stiff competition.
Tesla’s Position in the Chinese Market
Tesla has been a significant player in China’s electric vehicle market.
- Market Share: While still a major brand, Tesla has seen its market share decrease, with sales representing approximately 10.6% of total battery EV sales in 2024.
- Competition: The company faces strong competition from local EV manufacturers like BYD, who have been rapidly gaining market share with innovative and affordable vehicles.
- Sales Decline: Tesla experienced it’s first annual decline in worldwide vehicle deliveries in over a decade last year and it also witnessed the first-ever drop in annual shipments from its Shanghai plant since the facility started mass production in 2020.
Broader Industry Context
Tesla is not the only automaker facing recalls in China. Several other manufacturers have announced recalls as well.
- Xiaomi: Recalled 30,931 vehicles over software issues affecting the parking assist system.
- BYD: Recalled 6,843 Bao 5 plug-in hybrid SUVs due to fire risks.
- Honda: Chinese joint ventures, Dongfeng Honda and GAC Honda, will recall 1.37 million vehicles.
- Hyundai/Kia: Recalled over 400,000 vehicles due to issues with the Hydraulic Electronic Control Unit (HECU)
This wave of recalls highlights the complexities of modern automotive manufacturing and the growing importance of software in vehicle safety and performance.
Table of Affected Vehicles
| Vehicle Model | Production Dates | Issue | Number of Vehicles | Software Update Version |
| :—————————– | :——————————– | :——————————— | :—————— | :———————- |
| Imported Model S & Model X | July 16, 2023 – December 14, 2024 | Rearview Camera Malfunction | 335,716 | 2024.44.25.3 or later |
| Locally Produced Model 3 & Model Y | July 16, 2023 – December 14, 2024 | Rearview Camera Malfunction | Included in above | 2024.44.25.3 or later |
| Locally Produced Model 3 & Model Y | January 3, 2022 – September 23, 2023 | Electronic Power Steering Malfunction | 871,087 | 2023.38.9 or later |
Conclusion
Tesla’s recall of over 1.2 million vehicles in China is a significant event that highlights the challenges of managing software in modern vehicles. The company’s decision to use OTA updates to resolve the issues demonstrates the increasing role of technology in addressing safety concerns. Despite facing growing competition and recent sales declines, Tesla’s ability to quickly respond to these issues may help to preserve its position in the Chinese market. This recall also serves as a reminder of the complexities of modern vehicle manufacturing and the importance of ongoing monitoring and software updates to ensure vehicle safety and performance across the automotive industry.
