Elon Musk’s electric car company is facing increasing pressure in China when it is heavily criticized by the media and regulators of this country.
According to the CNBC Tesla is facing one of the worst public relations crises in China, the market considered the most important for the US electric car maker’s growth.
On April 19, a woman who claimed to be a Tesla customer climbed onto the roof of a Tesla car at a Shanghai auto show. She wears a T-shirt with the words “brake not working”. Tesla car owners in China have been complaining about brakes on social media for months. The Shanghai police identified the woman named Zhang and said she was sentenced to 5 days in prison for disturbing public order. Tesla is constantly in trouble in the Chinese market. Photo: Reuters. The three lessons of Tesla Tesla accused the woman of being involved in a “speed violation” collision in February. During two months of negotiations, she refused to have a third party inspect it but demanded a refund for the car. Reply to the magazine Caijing Tesla China Vice President Tao Lin revealed that the woman was demanding high compensation and the company had no reason to pay. In a post on Weibo, Tesla claims not to compromise with “unreasonable requests”. After that, state media and government agencies quickly reprimanded Tesla. State news agencies publish a series of editorials. The Chinese government’s Central Disciplinary Committee also issued a warning statement. An article titled “Three Lessons Tesla must learn” advised the American electric car maker to respect the Chinese consumer market. “The arrogant and bossy attitude that the company shows in public is deplorable and unacceptable. This could seriously damage the company’s reputation and customer base in the Chinese market, “said the report. The Hoan Cau Times criticize. Tesla apologized for failing to promptly address the vehicle owner’s problems. The billion-dollar country is an important market for Tesla. Photo: Reuters. In posts on Weibo, Tesla said it was “ready to cooperate with the authorities”. The company claims to “self-check and fix to fix” problems in the customer service process. Tesla expanded its market share to 1.4 billion people over the past two years. With the support of the Beijing government, Tesla built a large factory in Shanghai in 2019. Last year, Model 3 cars produced at this factory began to be delivered to customers. Tesla’s sales in China have more than doubled by 2020. The Model 3 is the best-selling electric vehicle in the billion-population market. Tighten control CEO Elon Musk even met Chinese Premier Li Keqiang in 2019. But success always comes with attention, especially as Chinese homegrown companies are looking for a foothold in the market. This country’s electric car school. China’s favorable policies for the electric car industry spurred the birth of startups like Nio and Xpeng Motors. These businesses did not hide their ambition to compete with Tesla, although sales were still far behind. “The leading company brings a lot of benefits to China. But when that company dominates the market, it no longer benefits Beijing,” said Bill Russo, founder and CEO of private companies. Investment, Automobility Limited, commented. Companies like Daimler’s Volkswagen and Mercedes have been under similar scrutiny in the past, he said. The leading company brings many benefits to China. But when that company dominates the market, it no longer benefits Beijing Bill Russo, CEO of Automobility Limited Negative news about Tesla has increased in China over the past months. In early 2021, a Tesla Model 3 is believed to have exploded in a Shanghai garage. According to a post in state media, there are at least 10 reports in 2020 of Tesla drivers being unable to control the vehicle. On April 13, on Dongjiang Avenue (Guangzhou), a Tesla caught fire after colliding with a roadblock and another vehicle, leading to the death of a passenger. After the incident, some Tesla owners said they were prevented from driving on highways. Chinese police appear to be blocking all Tesla vehicles from running on the highway because of safety concerns. On March 19, the news agency Bloomberg citing some sources about the Chinese military’s claim that omnidirectional cameras and ultrasonic sensors on Tesla vehicles could reveal the location. A Twitter account posted a picture with the caption: “In Guangzhou, #Tesla trams are not allowed to travel on highways”. Photo: Twitter. Therefore, the ban on the company’s vehicles to ensure the security of military information. All Tesla car users were required to park outside military complexes. In February, the China Market Administration (SAMR) met with Tesla’s subsidiaries to discuss vehicle quality. The agency’s statement on April 21 showed that they were very concerned about the incident at the Shanghai auto show. SAMR also directs local regulators to strengthen the protection of consumers’ interests. Billionaire Musk is looking for a way. In March, in an interview with state television CCTV China’s future “is going to be great,” he said, and that the country is “the biggest market” for Tesla.
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