A recent damning report has shed light on Tesla’s controversial activities in China. The report reveals that the electric car manufacturer has been quick to take legal action against its own customers and the media, while also allegedly pressuring auto journalists to avoid negative coverage.
As the sole foreign automaker with a wholly-owned car factory in China, Tesla’s partnership with the Chinese Communist Party (CCP) has been crucial to its success. The establishment of Gigafactory Shanghai in 2018 marked a significant milestone for Tesla, making it the company’s largest production hub and a major source of revenue and profit.
However, the new report exposes Tesla’s aggressive tactics to protect its interests in China. According to the Associated Press (AP), Tesla has sued several Chinese customers who reported sudden vehicle malfunctions or accidents, as well as bloggers and media outlets that criticized the company.
What sets Tesla’s behavior apart is its close relationship with CCP officials, particularly Li Qiang, the former party boss of Shanghai. The report suggests that Tesla has received preferential treatment from the Chinese government, including regulatory benefits and positive media coverage.
Journalists in China have reportedly been instructed to refrain from negative reporting on Tesla, further highlighting the company’s influence over the media. Tesla’s success rate in legal disputes with customers is also notably high, with many complaints stemming from poor communication and lack of transparency.
One particular case highlighted in the report involves a customer named Ms. Zhang, who alleged a brake defect in her Tesla vehicle. Despite her protests and legal action, Tesla ultimately prevailed in court, forcing Ms. Zhang to pay damages and issue a public apology.
While Tesla maintains that it acted in accordance with the law, the report raises questions about the company’s handling of customer complaints and criticism. Some customers believe that better communication from Tesla could have prevented the escalation of disputes.
Our Take
The revelations in the report offer a sobering look at Tesla’s operations in China and its approach to customer relations and media scrutiny. The company’s aggressive stance towards critics and legal action against customers raise concerns about its commitment to transparency and accountability.
As Tesla continues to expand its presence in China and other markets, it may need to reevaluate its strategies for handling customer complaints and engaging with the media. Building trust and fostering open communication are essential components of long-term success in the automotive industry.
FTC: We use income earning auto affiliate links. More.
