US-based electric vehicle maker Tesla Inc, which is under scrutiny in China for safety and customer service complaints, strengthens engagement with mainland regulators and strengthens team government relations, industry sources told Reuters news agency.
Tesla’s shift in strategy leading to more behind-the-scenes interactions with policymakers in Beijing compared to relatively little previously shows how seriously the automaker sees setbacks in its second-largest market, Reuters reported on Monday.
It also comes at a time when China is trying to regulate large and powerful private companies, especially in the tech sector, due to concerns about their dominant position in the market.
Tesla did not immediately respond to a request for comment on Monday, a public holiday in China.
As elsewhere, regulators in China, the world’s largest auto market, discuss industry policies and standards with global and local companies, industry associations and think tanks.
Manufacturers typically attend such meetings in China, but unlike competitors such as Toyota Motor and General Motors Co, Tesla officials were largely absent from closed meetings, according to four people familiar with the matter.
Instead, Tesla officials regularly speak at high-level industry conferences. Outside of China, Tesla CEO Elon Musk regularly takes to Twitter to comment on or criticize regulators or rules.
But in recent weeks, Tesla executives have attended at least four policy talks, on topics such as automatic data storage, vehicle-infrastructure communication technologies, car recycling and carbon emissions, have people said.
California-based Tesla, which makes Model 3 electric sedans and Model Y sport utility vehicles at its own factory in Shanghai, did not make any notable commitments in the meetings but did participate in some discussions, they said. .
Recruitment campaign
Tesla is also expanding its government relations team in China, one of the sources said.
According to two recruitment announcements in April on its WeChat account, Tesla is recruiting managers to update a database of policies and maintain relationships with government and industry associations to “create a harmonious external environment to support business development. of Tesla in the regional market ”.
It wasn’t immediately clear how many managers Tesla planned to hire for government relations.
Representing around 30% of Tesla’s global sales, China is the automaker’s second-largest market after the United States and helped it achieve record-breaking vehicle deliveries in the first quarter.
In March, Tesla came under scrutiny when the Chinese military banned its cars from entering its complexes, citing security concerns with vehicle cameras, sources told Reuters. ‘time. [File: Qilai Shen/Bloomberg]
Pressure has mounted in recent months on Tesla’s excellent relations with Beijing.
In February, Chinese regulators summoned him on consumer reports of battery fires, unexpected acceleration and failures in over-the-air software updates.
And in March, Tesla came under close scrutiny when the military banned its cars from entering its complexes, citing security concerns with vehicle cameras, sources told Reuters. ‘time. Days later, Musk appeared via video in a high-level forum, saying that if Tesla used cars to spy in China or elsewhere, it would be shut down.
State media and regulators turned to Tesla last month after a customer, angry over handling his brake malfunction complaint, climbed into a Tesla car in protest at the show in the Shanghai auto. Videos of the incident went viral.
Grace Tao, a Tesla vice president who heads its government relations efforts in China, was criticized in state media last month after being quoted in a media interview to question whether the aggrieved customer was acting her way. own boss.
Responding to the various complaints, Tesla said it would set up a data center in China, launch a self-inspection to improve services and work with regulators.
