Tesla’s stance shifts, is stepping up interaction with mainland regulators
Tesla’s hard-line stance has softened as it faces scrutiny in China over safety and customer service complaints, sources said, adding that the company is strengthening its interactions with regulators and expanding its government relations team.
Reuters reported that people familiar with the matter said that Tesla’s change in strategy to actively interact with decision makers in China shows that the U.S. electric car maker is cautiously responding to the setbacks it faces in the Chinese market. China now accounts for about 30 percent of Tesla’s global sales.
Reuters noted that Chinese authorities are suspicious of the market dominance of some companies and are trying to tighten regulations on large private companies with significant influence, especially in the technology industry.
Chinese regulators often discuss industrial policies and standards with global and local companies, industry associations and think tanks, and manufacturers often attend these meetings.
Unlike rivals such as Toyota and GM, Tesla has rarely attended such closed-door meetings in the past, people familiar with the matter said. However, Tesla executives often speak at high-profile industry meetings, and the company’s chief executive, Musk, has always been outspoken and often tweeted comments and even attacks on regulators or regulations.
However, Tesla executives have attended at least four policy discussion sessions in the past few weeks on topics including vehicle data retention, vehicle communications technology, vehicle recycling and carbon emissions.
The sources also noted that Tesla is also expanding its government relations team; Tesla announced in April that it was hiring several managers to update its policy database and maintain the company’s relationships with government and industry associations to create a harmonious external environment that supports Tesla’s business.
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