Tesla summoned by China regulators over quality, safety issues

Five Chinese regulators recently summoned Tesla Inc representatives over quality and safety issues with its vehicles in the world’s biggest auto market.

Authorities including the State Administration for Market Regulation held talks with Tesla’s Beijing and Shanghai units after customers complained of problems including abnormal acceleration and battery fires, the market watchdog said in a statement Monday. Tesla was asked to improve internal management, comply with Chinese law and regulations and protect consumers’ rights.

A Tesla representative said the company accepted the government departments’ guidance, has reflected on shortcomings in its business processes and strengthened self-inspection and internal-management practices. The company issued a public apology to China’s state grid last week after a video purportedly showed one its staff telling a customer that an overload in the national grid was to blame for damaging their electric vehicle.

China is Tesla’s largest market after the US, with sales in Asia’s biggest economy topping 120,000 units in 2020. The carmaker is still ramping up production at its factory on the outskirts of Shanghai.

Tesla sold 15,484 locally made vehicles in China last month, ranking third in electric-vehicle sales, the China Passenger Car Association said Monday. PCA Secretary General Cui Dongshu said Tesla may have “explosive" sales growth in China next month on rising production of its Model Y.