Tesla deploys software update to fix safety issues in 1.2 million EVs in China

The cars had two software issues which can cause the electronic power steering system to fail, as well as cause a malfunction of the cars’ rearview cameras

Tesla Inc. will release a software update for around 1.2 million cars in China to fix power steering and rear view camera issues, according to a Bloomberg report.

A Tesla car is driven past a store of the electric vehicle (EV) maker in Beijing, China January 4, 2024. (Florence Lo/Reuters)

The software update was needed since the cars had two software issues which could cause the electronic power steering system to fail as well as cause a potential malfunction of the cars’ rearview cameras which can impair vision while reversing, according to the report which cited a statement from the State Administration for Market Regulation.

The power steering issue affected 871,087 Chinese-made Model 3 and Model Y vehicles while the camera issue affected 335,716 cars including a mix of imported Model S and Model X electric vehicles and domestically produced Model 3 and Model Ys, according to the report.

Though the update is over-the-air and can be performed by most owners without going to service centres, Tesla will contact owners who can't do this to provide replacements free of charge.

This comes after Tesla had filed a similar recall notice in the US earlier this month which involved about 240,000 cars.

The US-based EV giant isn't alone in this either. Even Xiaomi Corp. recalled 30,931 SU7 electric sedans produced between February and November last year because of a software issue which posed a potential safety risk around the cars’ intelligent parking feature, the report cited the State Administration for Market Regulation as having said in another statement.

At the moment, Tesla has a market share of about 10.6% in China's battery EV market, which has shrunk from 16% in 2020. It sold about 2.3 million cars there as of the end of 2024, according to the report which cited data from the China Automotive Technology and Research Center.

This is because of an unprecedented surge in competition from Chinese players like BYD Co.