Nine automakers, including Tesla, plan to recall more than 4 million vehicles in China over electric door handles that regulators say could be difficult to locate and use in an emergency. Tesla accounts for nearly 3 million of those vehicles, and its stock fell nearly 4% on Aug. 24 as the news broke.
Nine automakers plan to recall more than 4 million vehicles in China, with Tesla accounting for nearly 3 million of the total. Chinese regulators are enforcing the action because door handles on the affected vehicles could be difficult to find and use during an emergency.
Why regulators are acting
On Tesla vehicles, exterior door handles are electric and draw power from the car's operating system rather than connecting mechanically to a latch. Manual releases exist inside the cabin, but the source notes they can reportedly be difficult to locate. Xiaomi, Leapmotor, Xpeng, and Geely Holding are also recalling vehicles in China over the same issue.
In an Aug. 21 statement, Tesla said the recall covers its Model 3, Y, S, and X, citing door handles that blend into the interior. According to media reports, Tesla warned that the design could "impede rescue efforts by those outside the vehicle, posing a safety hazard" in a severe collision.
A pattern regulators have flagged before
According to Reuters, Chinese regulators are responding to several past incidents in which electric door-handle releases failed during emergencies. Last October, Chinese state media reported that a driver in a Xiaomi vehicle died after an accident in which people nearby could not open the vehicle's door.
The recall follows a Chinese ban on concealed door handles in electric vehicles that takes effect in 2027, though vehicles already approved have until 2029 to comply. According to the BBC, new rules require a manual release handle on both the inside and outside of the vehicle. Reuters reported that Tesla's software update will make windows open following a crash, on top of planned warning labels.
The issue isn't limited to China. In 2025, the National Highway Traffic Safety Administration opened a preliminary review after reports that drivers couldn't get into vehicles due to malfunctioning door handles, and the agency found the handles may not work if they don't receive enough power from Tesla's battery system.
What it means for the stock
Tesla shares fell nearly 4% on Aug. 24, though broader tech stocks also underperformed as rising long-term bond yields weighed on investors. A Motley Fool analyst noted that most Tesla investors have already shifted their focus to the company's robotaxi fleet and humanoid robots rather than the core EV business, and argued Tesla's valuation remains stretched regardless of the recall's outcome.
Source: The Motley Fool
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