Elon Musk’s Tesla will issue a software update to more than 435,000 of its electric cars in China to fix a problem that could lead to a collision in extreme circumstances, Reuters reported.

Elon Musk in a Tesla carPhoto: MEGA / Mega Agency / Profimedia

While the update will be an over-the-air update that can be installed remotely, it is technically considered a recall by auto industry regulators.

The measure will affect 142,277 Tesla Model 3s and 292,855 Model Ys, according to China’s State Administration of Market Regulation.

The new headache for Tesla comes after Tesla also recalled 80,000 Model S, Model X and Model 3 vehicles in China last week due to software and seat belt issues.

On November 20, Tesla also recalled 321,000 of its cars in the US due to problems with the taillights. Days earlier, Tesla recalled nearly 30,000 other Model X vehicles in the United States over a problem that could cause the front passenger airbag to deploy improperly.

Back in China, Tesla last December recalled 200,000 of its cars in that country due to possible trunk defects.

Good news and bad news for Tesla

The good news for the Elon Musk-led automaker is that from November 1 this year to the 27th of this month, its sales in China nearly doubled compared to the same period last year.

The increase in sales comes after Tesla slashed the prices of its Model 3 and Model Y cars, offering other incentives to potential buyers in its “emerging market.”

In September, Tesla’s sales in China amounted to 83,135 units, which is an absolute record for the company.

The bad news for the Elon Musk-led automaker is that investors seemed more concerned about recalls and other systemic problems at the company and the broader U.S. economy, as sales growth in China failed to stem a spectacular slide in Tesla’s stock market.

In a report published recently by Morgan Stanley, one of the largest banks on Wall Street, the auto company’s problems are partly explained by the public controversy in which Elon Musk participated after the purchase of Twitter.