Tesla plans to recall more than 435,000 cars in China and issue software updates to fix a rear light issue, the Chinese market regulator said Thursday.
A total of 142,277 Model 3 sedans and 292,855 Model Y vehicles could be affected by the issue in which a software defect stops the rear lights on the car from illuminating, according to China's State Administration for Market Regulation.
The regulators said this poses a safety hazard for drivers.
Last month, Tesla recalled more than 321,000 vehicles in the U.S. over a similar issue.
Tesla will issue software updates remotely to fix the problem.
Technical issues are mounting for Tesla in China. The U.S. electric carmaker announced a recall of more than 80,000 cars in China last week over seatbelt and software issues.
China is one of Tesla's most important markets. The company has a major production factory in Shanghai and has been selling a record number of China made-cars in recent months.
But Elon Musk's automaker is also facing tougher competition from domestic rivals including Warren Buffett-backed BYD and startups including XPeng, Nio and Li Auto. And in 2023, electric carmakers are planning to release a slew of new vehicles.
In October, Tesla cut the price of its Model 3 and Model Y vehicles in China after raising them earlier in the year on rising material costs.