The report said the customs authority in Shanghai had found various irregularities in 1,600 imported Model 3 cars, including the improper labeling of the vehicles.
Customs has notified Tesla not to sell or use Model 3 vehicles that have already been cleared, the report said, citing a notice issued by the authority on Mar. 1.
The authority has also urged inspectors at all ports responsible for importing vehicles to step up inspections of other imported Tesla models and suspend their release if similar problems are uncovered, the report added.
The carmaker was not immediately available for comment.
Tesla has been trying to roll out the Model 3 in China ahead of schedule in a bid to revive sales hit by Sino-U.S. trade tensions.