The electric car maker company Tesla perceives ascending pressure from China as the company faces criticism from media and regulators. This comes after a woman’s protest against the company at one significant auto show earlier this week.
A market investor expects that the company could be facing a dire relation crisis with the locals in China, and this is likely to make Tesla’s growth critical. The Vice-President for Tesla in China Tao Lin said in an interview with Caijing that the woman protester expected huge compensation while there is no ground for the company to give it.
Tesla’s post on Weibo (a platform like Twitter) said that the company will not bow to unreasonable demands. Government and State media were pretty quick to react to this statement. The Central Disciplinary Committee in China issued a warning to the company while the media gave a series of editorials in response.
A woman claiming to be the company’s customer stood at the top of one of its cars in an auto show held in Shanghai on Monday. She wore a t-shirt with the message “brakes don’t work,” alleging that her car’s brakes have failed. This issue, as per Chinese social media, has been raised by several Tesla users for a few months.
A video recording of the woman’s protest picked up by state media has gone viral on social networking sites. Police officials have identified the woman’s surname as Zhang and she was detained for five days for disturbing public order.
The company stated that the woman caused a collision in February for “speeding violations” and pressed on a refund for the car without allowing any third-party scrutiny during their negotiations for the past two months.
Global Times, the state’s tabloid said, “The arrogant and overbearing stance the company exhibited in front of the public is repugnant and unacceptable, which could inflict serious damage on its reputation and customer base in the Chinese market.”
Meanwhile, the company issued an apology for not being able to resolve the owner’s concerns on time. Tesla’s posts from Weibo on Monday and Tuesday read that the company would cooperate with the officials. The posts also read that Tesla would perform self-scrutiny and self-rectification to correct customers’ problems with the company’s services.
On Thursday, the company stated that it gave a piece of the raw vehicle information to Zhang from thirty minutes before the said crash happened.