ADVERTISEMENT
LIVE DESK·Global markets desk·Last updated 14s ago
ADVERTISEMENT
Markets/EquitiesArticle

Tesla recalls 2.98 million vehicles in China over safety issues

China’s market regulator orders recall of nearly 3 million Tesla vehicles, including Model 3, Model Y, Model S and Model X, citing emergency door handle and driver-assistance concerns. Fixes include OTA updates and warning labels.

PA
Priya Anand · Equities & Earnings Desk · 22 Aug 2026 · 08:14 · 1 min read
Share
Tesla recalls 2.98 million vehicles in China over safety issues

China’s market regulator has ordered Tesla to recall nearly 3 million vehicles in the country, marking the automaker’s largest-ever recall in the Chinese market. The recall covers 2.98 million China-made and imported Tesla vehicles, including Model 3, Model Y, Model S and Model X, and will begin on September 25.

The first recall action addresses emergency door release handles that may be difficult to identify in low-light conditions or after an electrical system failure. The issue could impede escape or rescue efforts following a severe crash. Tesla plans to resolve the problem by affixing warning labels and deploying an over-the-air update to automatically lower windows after a collision.

A separate recall involves 2.74 million China-made Model 3 and Model Y vehicles, which will receive an immediate over-the-air software update. The update aims to strengthen driver-attention monitoring while assisted steering and other driver-assistance features are active, reducing the risk of collisions if drivers fail to respond in time.

The recalls follow a directive from China’s market regulator and underscore growing scrutiny of advanced driver-assistance systems and vehicle safety protocols in the country’s automotive sector.

This article was produced with AI assistance and edited by a Finance Review Daily journalist.
ADVERTISEMENT
Share this story
PA
Written by
Priya Anand
Equities & Earnings Desk

Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.

More from Priya Anand →
ADVERTISEMENT
Novara — A Smarter Way to Access Global Markets
ADVERTISEMENT