More than 80,000 cars are being recalled in China due to software and seatbelt issues.
More than 67,000 imported Model S and Model X cars are being recalled by the U.S. electric car giant.
The batteries in these models are affected by a software issue. The software on these vehicles will be upgraded without cost.
The Model 3 cars are being recalled due to a seatbelt issue as well as 2,736 imported cars.
The seatbelts on the cars will be checked byTesla.
When contacted by CNBC, the company was silent.
There is a chance that the recall will have a negative effect on the company's stock price in China. The market is more competitive with domestic competitors like BYD.
"Recalls are always costly and often get amplified in a way that can be reputationally damaging."
It can be managed if they get out in front of it.
China is an important market. A record number of China made cars have been sold by the company recently.
Xpeng, Nio and Li Auto are ramping up new car releases in a bid to challenge the U.S. electric automaker's dominance in China.
The price of the Model 3 and Model Y cars in China was slashed last month due to higher material costs.
It is not the first time that a car has been recalled. More than 100,000 cars were recalled due to an overheating problem.
CNBC's Sam Vadas made a contribution to the report.