Top News

• Tesla will recall 973,156 China-made Model 3 vehicles manufactured between March 4, 2019 and Apr. 29, 2026, and 1.96 million Model Y vehicles manufactured between Nov. 16, 2020 and Apr. 30, 2026.
• The recall also covers 35,590 imported Model 3s, 8,328 Model X and 2,123 Model S cars.
• Tesla will add warning labels and remotely update the window-control software

Tesla (TSLA) is set to recall nearly three million Model 3 and Model Y vehicles in China over issues with its emergency mechanical door handles and driver monitoring systems.

This represents Tesla’s biggest recall in China.

TSLA shares edged 1% higher at the time of writing.

TSLA To Update Window-Control Software

According to China’s State Administration for Market Regulation (SAMR), beginning Sept. 25, 2026, Tesla will recall 973,156 domestic Model 3 vehicles manufactured between March 4, 2019 and Apr. 29, 2026, and 1.96 million China-made Model Y vehicles manufactured between Nov. 16, 2020 and Apr. 30, 2026.

The action also covers 35,590 imported Model 3s, 8,328 Model X and 2,123 Model S cars.

The regulator said the emergency door handles can blend in with the interior trim. If a severe crash disables the vehicle’s low-voltage electrical system, occupants may struggle to open the doors, potentially delaying their escape and rescue efforts from outside of the vehicle.

Tesla will add warning labels and remotely update the window-control software to lower the windows after a collision. Vehicles already carrying the labels will only require the software update, it said.

Driver Monitoring System In Focus

Tesla’s recall also extends to 2.74 million China-made Model 3 and Model Y vehicles manufactured between March 4, 2019 and Dec. 7, 2025, because the driver-monitoring system may not adequately warn drivers to keep their eyes on the road while assisted steering is active.

An over-the-air update will add in-cabin camera monitoring alongside steering-wheel torque checks.

In 2026, Tesla has announced four recalls in the U.S. so far, covering 253,965 vehicles. These include 218,868 vehicles from its Model 3, Model Y, Model ‌S, ⁠and Model X lineup with delayed rearview camera images, 14,575 Model Ys missing certification labels, 173 Cybertrucks facing a wheel-separation risk, and 20,349 Model 3 and Model Y vehicles with excessively bright headlights.

Retail Says TSLA Is Undervalued

Retail sentiment surrounding TSLA on Stocktwits turned ‘bearish’ from ‘neutral’ over the past 24 hours.

One user said the stock is undervalued by $40.

TSLA stock is down 21% so far in 2026 and is the biggest laggard among the Mag 7 stocks.

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