On Monday, China’s main regulatory body, the State Administration of Market Regulation, warned Tesla Inc. (NASDAQ: TSLA) which must strengthen internal management and comply with Chinese laws and regulations.
What happened: In a statement posted on its website, SAMR says that, along with four other government agencies, it has called Tesla Motors Beijing and Tesla Co. Shanghai regarding consumer complaints about abnormal acceleration, battery fires and problems with remote updates to vehicles.
Why it matters: Tesla is not used to such harsh words from Chinese government agencies.
Last week, Tesla received approval for a new manufacturing process at its Shanghai Gigafactory.
On Friday, Tesla announced it was recalling 36, 126 Model S and X vehicles in China because of problems related to touch screen failures after receiving a security alert from the National Road Traffic Safety Administration in the US in January.
What is the next: In response to Chinese regulators, Tesla said in a statement that “it sincerely accepts the guidance of government agencies and will reflect deeply on the deficiency in the company’s operations, while improving self-inspection and self-discipline”.
Photo courtesy of Tesla.
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