It is no secret that China is a huge and growing market for Tesla. However, the global electric automaker behemoth has found itself in hot water recently over the way it handled an unhappy Chinese citizen.
At the moment, there is too much gray area to know the real truth behind it. But what matters the most is that Tesla is taking action to engage with the Chinese regulators in China and has been expanding its government relations team to resolve product quality issues ahead of future problems.
All of these product quality issues point to the recent Model 3 battery fire that ignited due to a damaged battery in Shanghai, spying concerns with the electric car’s built-in camera system, and problems with interacting with customers as well as customer service in general.
Tesla is worried about the reported issues and negative news that have been trending in recent weeks. It only makes sense that the electric automaker will take action steps to engage and clarify the matters.
While other automakers have earned a reputation for being involved in the industry to discuss regulatory issues and concerns. Tesla is not the first one to do that as it does not have a public relations department where other automakers are represented in meetings with the Chinese regulators.
Reports are saying that Tesla is expanding its government relations team now in China. Furthermore, Automotive News points out that the electric automaker is hiring managers to update the policy database and maintain relationships with the government and industry associations.
It seems like Tesla has decided to take serious, yet decisive action to focus on building a harmonious external environment that will support the automaker’s business development in Asia. The electric automaker enjoyed a full year of record-breaking growth thanks to strong delivery results and a profitable cash balance sheet.
Tesla has been under scrutiny in China, the United States, and Europe as well. Elon Musk and his team are pivoting carefully as the electric automaker aims to re-establish trust in China, their number one biggest market in the world.
The company said that the data collected by the car cameras will be stored in the country. This further indicates Tesla plans to set up a data center and start a self-inspection process as they work closely with the Chinese government regulators with product quality issues and customer complaints.