The recall applies to all Model S and Model X cars imported into China from September 2013 to January 2018.
Defects in the suspension found in both models could “increase the risk of accidents,” the State Administration for Market Regulation said in a statement.
In New York, shares in the fast-growing electric carmaker fell sharply on the Nasdaq following the announcement.
China is the world’s biggest auto market and the main growth driver for many car manufacturers — especially for Tesla, which intends to benefit from the country’s ambitious targets for reducing CO2 emissions.
Tesla’s Shanghai factory – its first outside the United States – produces its mid-price, mass-market offering Model 3, which it plans to begin exporting to Europe this month.
The firm said Wednesday that profits in the past quarter had more than doubled and forecast that deliveries would hit 500,000 this year.
The company reached out to the U.S. agency to notify it of the Chinese recall, stating that the matter was overblown.
According to a letter from Elizabeth Mykytiuk, Tesla’s managing counsel for regulatory affairs, obtained by Electrek, the automaker believes it was strong-armed into an unnecessary action. The EV firm told the NHTSA that the alleged suspension failures occurred in fewer than 0.05 percent of vehicles owned outside of China and only about 0.1 percent of all units sold in the PRC.