Big trouble in China for Tesla

Tesla’s now getting criticism in China following a dream run there.

A woman jumped on the roof of an EV at Tesla’s Auto Shanghai 2021 display yelling she almost died because of brake failure and Chinese agencies have criticised Tesla’s attitude to consumer service and voiced security concerns about the EVs’ cameras, Bloomberg reports.

Bloomberg says Tesla has apologised to a customer in China following the Shanghai incident (where it has also stepped up security) and that disquiet has been growing.

Tesla has tried to calm China camera spying fears by saying its EV cameras are not activated there, Bloomberg adds.

Since starting its Shanghai Gigafactory in 2019, Tesla has enjoyed an enviable run in China, receiving support from the government and appearing to skirt tensions between Washington and Beijing, Bloomberg reports.

However, Bloomberg says China’s state-run Xinhua news agency published an article saying the quality of Tesla’s EVs must meet market expectations to win consumer trust, adding the company should address consumer hesitation about buying its cars after issues ranging from malfunctioning brakes to fires during charging emerged.

The Commission for Political and Legal Affairs of the Communist Party of China Central Committee then posted a commentary on its WeChat account saying Tesla should respect Chinese consumers and comply with local laws and regulations.

In March, Tesla had its cars banned from military complexes in China because of concerns about sensitive information being collected by the vehicles’ cameras.

The month before, Tesla issued a public apology to China’s state grid after a video purportedly showed staff blaming an overload in the national electricity network for damage to a customer’s vehicle, Bloomberg states.

Tesla chief executive Elon Musk has strenuously denied the company would ever use a car’s technology for spying, and Tesla’s Beijing unit says cameras built into its EVs aren’t activated outside of North America, Bloomberg says.

“Tesla’s China honeymoon appears to be coming to an end right as the US automaker is facing increasing competition from a slew of younger, cashed up local EV players like the New York-listed Nio and Xpeng” which were at Auto Shanghai.

Bloomberg notes Tesla has also come under fire for its perceived arrogance towards car owners. “Many have taken to social media to complain about its lack of customer service and seeming disinterest in addressing problems. Others are angry that they’ve purchased a Tesla only to discover the company has steeply discounted the same model weeks later.”

However, Bloomberg says that for all the grumbling Tesla’s EVs remain hugely popular in China.