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

American EV giant Tesla Inc. (NASDAQ: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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