Tesla (TSLA) models 3 and Y are being recalled in Germany because of a technical problem in the cars’ emergency system that has affected 59,000 vehicles globally.
The Federal Motor Transport Authority found a software flaw was causing a breakdown of the recall, which is designed to automatically contact emergency responders in the event of a serious accident.
Software error leads to failure of the recall system, the agency said, adding that the fault has only been identified in Model Y and 3 units produced this year. German media first reported on the notice on Saturday.
The federal agency can only order a recall in Germany, but said on its website that a total of more than 59,129 Teslas would be affected worldwide.
The Model 3 is currently the best-selling EV in the UK, having sold 34,783 units last year, figures from the Society of Motor Manufacturers and Traders (SMMT) show.
Affected owners in Germany are being told to call the manufacturer or drive to an authorized repair shop for a software update.
Emergency Call or recall is an emergency call system that automatically contacts emergency responders and communicates standard information to a Public Safety Answering Point in the event of a serious accident or emergency.
This service gets activated automatically if airbags deploy or a severe collision is detected.
The recall is just one of the many headaches CEO Elon Musk has had to face this year, as Tesla also recalled 130,000 vehicles across the US in May due to overheating touch screens.
The US National Highway Traffic Safety Administration (NHTSA) early in June upgraded its probe into 830,000 Tesla vehicles with the advanced driver assistance system Autopilot, after more than a dozen cars using its self-driving system crashed into parked emergency vehicles.
TSLA boss also said last month the car manufacturer's factory in Texas and the one in Berlin are "losing billions of dollars" due to a shortage of batteries and problems with Chinese ports.
Tesla bought $1.5bn worth of Bitcoin early last year in a radical move that made it the biggest company to move part of its cash reserves into cryptocurrency.
But the carmaker’s bet has turned heavily loss making in recent months as Bitcoin crashes to an 18-month low.
On Thursday - the final day of Tesla’s second financial quarter - Bitcoin traded at around $19,000, making the company’s investment worth an estimated $820.8m.
The company recorded the value of its Bitcoin at $1.26bn three months ago. While the market value of the holdings was close to $2bn, accounting practices mean the company does not register gains on its investments until it sells.
This means Tesla is likely to record an impairment on its Bitcoin holdings of around $440m - equivalent to 9pc of its annual profit last year - when it reports quarterly results later this month.
The cryptocurrency’s price has fallen by 60pc from $46,700 at the start of the year and almost 75pc from an all-time high in November. Rising interest rates and inflation have dulled interest in digital assets, while prices have also been hit by a series of crises at cryptocurrency companies.
Tesla briefly accepted Bitcoin as a payment method last year, but suspended its use after Mr Musk raised concerns about its carbon footprint. The world’s richest person said earlier this year that he had not personally sold any of his cryptocurrency investments.
A number of companies that have converted parts of their cash reserves to Bitcoin, such as Jack Dorsey’s Block, Coinbase and the software company Micro strategy, have suffered as the digital currency slumps. Around $1.3 trillion in total has been wiped off cryptocurrency markets this year.
Mr Musk has said Tesla needs to cut around 10pc of its salaried workforce as its newly opened factories in Berlin and Texas burn through huge sums of cash and the Tesla chief executive predicts an imminent US recession.
The company has lost 44pc of its value this year amid a widespread sell-off and as it has struggled to match demand, partly due to Shanghai’s lockdown closing the company’s plant there.
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