Tesla Summoned By Chinese Regulators After Customers Complain Over Battery Fires And Other Quality Issues

Chinese authorities have summoned representatives from electric carmaker Tesla Inc over consumer complaints over battery fires, unexpected acceleration and failures in over-the-air software updates, The Wall Street Journal reported.

The State Administration for Market Regulation, China’s top market regulator, said in a social media post on Monday (Feb 8) that it along with those from four other regulators (Ministry of Industry and Information Technology, Ministry of Emergency Management, Cyberspace Administration and Ministry of Transportation) had instructed Tesla to operate according to Chinese laws and regulations and strengthen internal management to ensure the quality and safety of its products.

In response, Tesla said it would thoroughly investigate the problems reported by consumers and step up inspections.

Tesla said on microblogging platform Weibo that it “sincerely accepts the government departments’ guidance” and will “strictly comply with Chinese laws.” It will also work to strengthen its “internal operational structure and workflow” under the direction of the regulators in order to ensure safety and consumer rights.

Tesla, the first foreign auto maker to operate a wholly owned plant in China, is building Model 3 electric sedans and Model Y sport-utility vehicles at its Shanghai gigafactory. It sold 15,484 China-made vehicles in January.

China is a critical market for Tesla's growth ambitions as it contributed $6.66 billion in revenue for Tesla in 2020, more than doubling the amount from a year before, and accounted for more than 20% of the firm’s total revenues.