This article first appeared on GuruFocus.
Tesla (NASDAQ:TSLA) is recalling about three million vehicles in China as regulators address concerns involving electronic door handles and driver-attention systems.
The door-handle action covers Model 3, Model Y, Model S and Model X vehicles produced or imported during specified periods from 2019 through April 2026. Tesla plans software changes and warning labels, with updates designed to help occupants exit after certain crashes.
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A separate recall affects China-made Model 3 and Model Y vehicles produced through December 2025. Tesla plans to improve driver monitoring through over-the-air software updates, while vehicles that cannot receive the changes remotely will require service-center work.
The recall comes as Tesla faces growing competition in China. Model Y deliveries in the country fell 18% year over year to 25,158 in July, according to China Passenger Car Association data.
The recalls could add near-term pressure on Tesla as safety scrutiny and weaker China demand create additional challenges in a key EV market.