Tesla to recall 1.6m cars in China over driver-assistance issue

Tesla is being forced by state regulators in China to "recall" 1.6m cars to fix its driver-assistance technology – another blow to Elon Musk after Chinese rival BYD recently overtook the American firm as the world's biggest electric carmaker.

The State Administration for Market Regulation (SAMR) said Tesla must issue software updates to Model Y, Model 3, Model S and Model X cars manufactured between August 2014 and December 2023.

The updates, which can be done remotely, relate to its Autosteer technology – the focus of the US recall of 2.03m cars last month, though if it not clear if regulators from both countries were highlighting the same issue.

"For vehicles within the scope of this recall, when the automatic assisted steering function is turned on, the driver may misuse the level two combined assisted driving function, increasing the risk of vehicle collision and posing a safety hazard," the SAMR said in a statement.

Tesla is facing tough competition in China, an important market for the brand that owns a manufacturing plant in Shanghai. This week it was revealed that Shenzhen-based BYD sold 526,409 fully electric vehicles in the fourth quarter of 2023, surpassing the 484,507 units sold by Tesla.