Five Chinese regulators have asked Tesla to address the quality and safety issues of the Model Y, which was launched at the US company's Shanghai plant.
China is the largest market for Tesla after the US, and the EV maker sold 120,000 EV units there in 2020.
The PRC authorities have recently received complaints of abnormal acceleration and battery fire, according to a statement from the China Passenger Car Association on Monday.
China is the largest auto market in the world and its government is actively promoting the introduction of electric vehicles. This helped Tesla sell 15,484 locally made vehicles last month, according to the China Passenger Car Association.
But now Tesla is facing harassment from the Chinese authorities, who asked the automaker to improve internal governance, comply with Chinese laws and regulations, and protect consumer rights.
Tesla said it "wholeheartedly accepted the recommendations of government departments" and that it "deeply analyzed the shortcomings" outlined in the statement.
Tesla has already encountered quality problems in the US and should recall a large number of Model S and Model X vehicles due to faulty touchscreens.
Elon Musk's automotive firm received approval to build its Shanghai plant in 2018, becoming the first foreign automaker to fully own a plant in China.
On Monday Tesla spiked bitcoin prices , announcing that it bought $ 1.5 billion worth of cryptocurrencies in January and expects to start accepting them as payment for cars in the future.