This is Tesla's biggest recall in China, involving potentially all delivered vehicles.

(Image credit: CnEVPost)

Tesla (NASDAQ: TSLA) is recalling more than 1.6 million vehicles in China over software issues, its biggest recall in the world's largest electric vehicle (EV) market, involving potentially all vehicles delivered.

Tesla is recalling a total of 1,610,105 vehicles with production dates between August 26, 2014, and December 20, 2023, including locally produced Model 3 and Model Y, as well as imported Model S, Model X, and Model 3 vehicles, according to a statement on the website of China's State Administration for Market Regulation.

With the automatic assisted steering function on, drivers may misuse the vehicle's L2 combined driver assist function, increasing the risk of a vehicle crash, according to the announcement.

Tesla will provide the recalled vehicles with newly developed features, including the addition of additional automatic assisted steering controls and related prompts, through an over-the-air (OTA) upgrade.

These new features will further urge drivers to perform their driving duties and follow driving regulations when the feature is enabled to reduce the risk of a crash caused by misuse of the assisted steering feature.

The recall will be implemented in phases so that users can complete the software upgrade without visiting a store, the statement reads.

For vehicles that cannot be recalled via OTA, Tesla will contact the user to upgrade the software for the vehicle free of charge.

In addition, Tesla is also recalling a total of 7,538 imported Model S and Model X vehicles with production dates between October 26, 2022, and November 16, 2023, effective immediately.

Due to a control issue with the door unlocking logic, in the event of a crash, the non-crash side door latch on these vehicles may disengage from the latch, leaving the door in a non-locked state.

Tesla will upgrade the software for the recalled vehicles free of charge through OTA technology to prevent the door latch from disengaging from the latch during a vehicle collision.

Tesla advises users to drive their vehicles with caution until the vehicle recall is implemented, and to upgrade their vehicle software as soon as possible after receiving the recall software update notice.

Tesla has a factory in Shanghai, which began construction on January 7, 2019, and went into operation at the end of 2019, making it the first wholly foreign-owned automotive manufacturing project in China.

Giga Shanghai began delivering Model 3 sedans in January 2020 and Model Y crossovers in January 2021 to local consumers.

By the end of November 2023, Tesla had delivered a cumulative total of 1,426,303 locally-produced Model 3s and Model Ys in China, data compiled by CnEVPost showed.

Tesla sold 94,139 China-made vehicles in December, including those exported and those sold locally, the second highest on record behind November 2022's 100,291, according to the China Passenger Car Association (CPCA).

Tesla's December vehicle deliveries in China and export figures from its Shanghai factory are expected to be available within days.

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