Tesla to Buy Back Canadian Model 3 and Model Y Vehicles Incorrectly Imported Into the U.S.

Tesla is recalling and repurchasing 15 vehicles in the United States after discovering they were incorrectly imported from Canada without meeting all applicable U.S. Federal Motor Vehicle Safety Standards (FMVSS).

The recall affects 12 Model 3s built between December 2023 and July 2024, and three Model Ys built between August 2025 and February 2026. According to documents filed with the National Highway Traffic Safety Administration (NHTSA), the vehicles were manufactured at Giga Shanghai and Giga Berlin to comply with Canadian Motor Vehicle Safety Standards (CMVSS) before being sold to customers in Canada.

However, owners of those vehicles later imported them into the U.S., and Tesla has since determined they do not fully comply with several American safety regulations.

How the issue happened

Between June 2024 and April 2026, Tesla issued letters of compliance to customers seeking to import their Canadian-market vehicles into the U.S. Those letters stated the vehicles met applicable U.S. safety, bumper, and theft prevention standards, aside from limited differences permitted under federal import rules, such as labeling and daytime running lights.

However, after receiving an import request outside its normal customer support process in April 2026, Tesla launched an internal review of its verification procedures for vehicles built at its international factories.

The investigation found that Canadian-spec vehicles built in Shanghai and Berlin differ from U.S.-spec vehicles in several important ways.

Most notably, they do not include a driver’s knee airbag required to satisfy certain U.S. crash test requirements. In addition, the affected Model Y vehicles lack interior impact countermeasures required under FMVSS No. 201, while the affected Model 3 vehicles were never certified under the bumper impact resistance procedures required by U.S. regulations.

NHTSA says these differences “may result in reduced occupant protection during a collision, increasing the risk of injury.”

Tesla’s response

Tesla stopped issuing compliance letters for affected Shanghai- and Berlin-built vehicles on May 8, 2026, while it completed its investigation. Following discussions with NHTSA, the company concluded on June 29 that the vehicles do not comply with FMVSS requirements and voluntarily initiated the recall.

Rather than attempting to retrofit the vehicles to meet U.S. standards, Tesla will repurchase all affected vehicles that have already been imported and registered in the United States at no cost to their owners.

For vehicles that have not yet crossed the border, Tesla will revoke the previously issued compliance letters, preventing them from being legally imported under the same process.

You can read the full recall notice below.