Tesla Recalls Over 1.2 Million Vehicles In China Over Rear View Camera Malfunction, Power Steering Failure Concerns

American EV giant Tesla Inc. TSLA is recalling over 1.2 million vehicles in China including both imported and domestically produced vehicles.

What Happened: The company is recalling 335,716 vehicles including imported Model S, X vehicles, and domestically manufactured Model 3 and Y vehicles citing concerns about a rearview camera malfunction. The vehicle may not possibly display a reversing image, increasing the risk of a crash, according to a recall notice published on China’s State Administration for Market Regulation website.

The company is also recalling 871,087 Model 3, Y vehicles citing concerns about the electronic power steering function. The power steering function may fail and pose a safety hazard, the notice said.

The company will fix both issues via over-the-air software updates.

Why It Matters: Tesla recalled 239,382 vehicles in the U.S. over concerns of loss of rearview camera image earlier this month. The recall population included 2024-25 Model 3 and Model S vehicles and 2023-25 Model X and Model Y.

The American EV maker has a gigafactory in Shanghai which manufactures Model Y and Model 3 for both sale within the country and export to regions including Europe.

According to Tesla’s latest quarterly report, the factory in Shanghai has a currently installed annual vehicle capacity of over 950,000 vehicles. The factory produced its 3 millionth vehicle in October and exported its 1 millionth vehicle in September.

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