Electric vehicle maker Tesla Inc, facing scrutiny in China over safety and customer service complaints, is boosting its engagement with regulators and beefing up its government relations team, industry sources said.
Tesla’s change of strategy leading to more behind-the-scenes interaction with policymakers in Beijing compared with relatively little previously shows the seriousness with which the US automaker views the setbacks in its second-biggest market.
TALKING SHOP
Photo: Bloomberg
It also comes at a time when China is trying to regulate large and powerful private companies, especially in the technology sector, on concerns about their market dominance.
As they do elsewhere, regulators in China, the world’s biggest auto market, discuss industry policies and standards with global and local companies, industry associations and think tanks.
In the past few weeks, Tesla executives attended at least four policy discussions, on topics including auto data storage, vehicle-to-infrastructure communication technologies, vehicle recycling and carbon emissions, the people said.
Photo: EPA-EFE
California-based Tesla, which makes electric Model 3 sedans and Model Y sport utility vehicles at its own plant in Shanghai, did not make major commitments at the meetings, but participated in some discussions, they said.
SEEKING HARMONY
Tesla is also expanding its government relationship team in China, one of the sources said.
According to two recruitment advertisements last month on its WeChat account, Tesla is hiring managers to update a policy database and maintain relationships with government and industry associations to “build a harmonious external environment to support Tesla’s business development in the regional market.”
Accounting for roughly 30 percent of Tesla’s global sales, China is the automaker’s second-biggest market after the US and helped it post record first-quarter vehicle deliveries.
PRESSURE MOUNTS
Pressure has been building over the past few months on Tesla’s mostly excellent relations with Beijing.
In February, Chinese regulators summoned it over consumer reports of battery fires, unexpected acceleration and failures in over-the-air software updates.
In March, Tesla came under scrutiny when the military banned its vehicles from entering its complexes, citing security concerns over cameras, sources said.
Days later, chief executive Elon Musk appeared by video at a high-level forum, saying that if Tesla used vehicles to spy in China or anywhere, it would be shut down.
Last month, Tesla was targeted by state media and regulators after a customer, angry over the handling of her complaint about malfunctioning brakes, climbed on top of a Tesla vehicle in protest at the Shanghai auto show. Videos of the incident went viral.
Grace Tao (陶琳), a Tesla vice president who heads its government relations effort in China, was criticized in state media last month after she was quoted in a media interview questioning whether the aggrieved customer was acting on her own.
In response to the complaints, Tesla said it would set up a China data center, launch self-inspection to improve services and work with regulators.
PATENTS: MediaTek Inc said it would not comment on ongoing legal cases, but does not expect the legal action by Huawei to affect its business operations Smartphone integrated chips designer MediaTek Inc (聯發科) on Friday said that a lawsuit filed by Chinese smartphone brand Huawei Technologies Co (華為) over alleged patent infringements would have little impact on its operations. In an announcement posted on the Taiwan Stock Exchange, MediaTek said that it would not comment on an ongoing legal case. However, the company said that Huawei’s legal action would have little impact on its operations. MediaTek’s statement came after China-based PRIP Research said on Thursday that Huawei filed a lawsuit with a Chinese district court claiming that MediaTek infringed on its patents. The infringement mentioned in the lawsuit likely involved
Taipei is today suspending work, classes and its US$2.4 trillion stock market as Typhoon Gaemi approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed income trading, statements from its stock and currency exchanges said. Authorities had yesterday issued a warning that the storm could affect people on land and canceled some ship crossings and domestic flights. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) expects its local chipmaking fabs to maintain normal production, the company said in an e-mailed statement. The main chipmaker for Apple Inc and Nvidia Corp said it has activated routine typhoon alert
GROWTH: TSMC increased its projected revenue growth for this year to more than 25 percent, citing stronger-than-expected demand for AI devices and smartphones The Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) yesterday raised its forecast for Taiwan’s GDP growth this year from 3.29 percent to 3.85 percent, as exports and private investment recovered faster than it predicted three months ago. The Taipei-based think tank also expects that Taiwan would see a 8.19 percent increase in exports this year, better than the 7.55 percent it projected in April, as US technology giants spent more money on artificial intelligence (AI) infrastructure and development. “There will be more AI servers going forward, but it remains to be seen if the momentum would extend to personal computers, smartphones and
CHANGE OF FORTUNES: Concern over a pricey valuation and the risk of tighter US curbs on chip sales to China have poured cold water on TSMC’s bullish momentum Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares fell the most in three months yesterday upon trading resumption, joining a global technology rout as investors dramatically soured on the promises of artificial intelligence (AI). The shares declined 5.62 percent to close at NT$924 in Taipei, dragging down the benchmark TAIEX, which fell 3.29 percent to 22,119.21 points amid a technical correction, Taiwan Stock Exchange data showed. Other chip stocks also fell, with ASE Technology Holding Co (日月光投控) plunging 9.86 percent, MediaTek Inc (聯發科) dropping 2.35 percent, Realtek Semiconductor Corp (瑞昱) falling 1.33 percent and United Microelectronics Corp (聯電) retreating 1.17 percent, while Apple