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The "Tesla Blunder"


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I have to wonder if Elon Musk didn't bite off more than he can digest. From the Global Times

Tesla besieged following auto show protest
Dispute with irate car owners comes to a head on social media

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A protester standing on a Tesla Model 3 on 2021 Shanghai Auto Show. Photo: CFP

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The US electric vehicle (EV) star is paying a price for not respecting Chinese customers despite spiraling sales data, experts said, adding that although this does not mean a Waterloo battle for Tesla, it does raise questions on the brand's long-term success in China.

Tesla seems to be in a tense atmosphere now. It tightened security around its booth in the auto show, including installing a rail around its booth and assigning about 10 black-suited guards at different areas of the booth. The company also sent one salesperson to accompany every visitor during their stay at the booth. 

At a Tesla dealership in Beijing's China Central Place, the Global Times saw no customers at about 13:30 pm

 

 

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  • Randy W changed the title to The "Tesla Blunder"

GT Voice: Tesla blunder offers a lesson for foreign firms in China
By Global Times

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Clearly, the way the car owner protested was inappropriate and even illegal. That is why she has been put under police detention for five days. However, 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.

Obviously, there is a lesson here for Tesla to learn that it must treat complaints made by consumers more seriously and with respect. In addition to conducting thorough investigation, the company might also need to rethink its public relations strategy in China and make necessary changes to win consumers' trust.

But this goes beyond Tesla. The company's blunder also offers a valuable lesson for other foreign businesses that are already in the Chinese market or plan to come to China. With Chinese consumers' growing awareness of safeguarding their rights, similar disputes and incidents could be inevitable in the future.

 

 

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An interesting video about Tesla's "improving" situation in China

China Observer said:

Recently, Tesla seems to be showing signs of reversal after the crisis of an angry Tesla owner protesting at the Shanghai Auto Show. 


On June 6th, a user with the nickname "Tesla bot" on Weibo released a recording that made many people's jaws drop. 
The recording revealed that Mr. Wen said that there was nothing wrong with the car, and it seems that he joined hands with the television and radio stations in Henan Province to "plan" this accusation, with the aim of refunding one and compensating three, which is to refund the purchase amount and then compensate three times the purchase amount for the loss. And in order to attract more public attention, he suggested finding people to go to the local Tesla store to stir up trouble, and find journalists as well as independent broadcasters. 
After the recording was released, it was reported by many mainland media and triggered a heated debate. 
While the Chinese government does not want Tesla to leave China, it has not loosened its grip on the company. 
On May 12, the Chinese government even issued a notice, specifying that operators collecting and providing sensitive personal information outside the vehicle, including vehicle location, driver or rider audio and video, and data that can be used to determine illegal driving violations, should meet six major requirements. The regulations also prohibit the manufacturer from transmitting user data outside the country, which is suspected of pressuring Tesla. 
Some analysts believe that Tesla is not yet in immediate danger. China's electric car industry has not yet fully matured, and the Chinese government is not yet in a position to completely turn the tables on Tesla. That's mainly because Chinese electric vehicle companies simply can't develop without central financial subsidies. Some analysts in China have sarcastically said that government subsidies are holding up "half of the profits" of domestic new energy companies.
China's financial subsidies for electric vehicles began in 2009, and in 2015, a Chinese city subsidized new energy vehicle companies up to 600,000 RMB per vehicle, or about 93,800 U.S. dollars. So, new energy vehicles have a unique business – where the left hand sells to the right hand. 
But some commentators believe that the key components of the Chinese industry are still having difficulty achieving self-sufficiency, not to mention core technology such as automotive chips. Moreover, the difficulty of manufacturing cars is much higher than that of cell phones, and if companies still swarm to invest in electric cars, they may rush to build chip factories everywhere, and then be unable to sustain them and eventually stop. 
Others believe that China's domestic consumption power has not yet recovered, and it is worth thinking about whether all consumers have the ability to buy electric cars. What's more, from "shared bikes" to chip factories, some companies and local governments have invested in them only to obtain financial subsidies from the central government. If the same model is followed, it’s possible that the electric car industry will become another unfinished mess like the chip industry.

Edited by Randy W (see edit history)
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Not so fast . . .

Tesla recalls over 280,000 vehicles in China on cruise control problem following recent missteps in local market

By Global Times

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The cruise control problem can cause the driver to activate the active cruise function by mistake in a series of scenarios including a sudden increase of speed that goes beyond the driver's expectation. In extreme cases, it can lead to a car crash, said the statement.

In response to the recall plan, Tesla China on Saturday apologized for the inconvenience caused to impacted consumers, saying customers can complete the recall procedure online via OTA updates. For users who can't finish the process through remote updates, Tesla will contact them to upgrade the cruise control system of their cars.

Tesla also vows it will constantly improve safety conditions of its products in accordance with national requirements.

Edited by Randy W (see edit history)
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"So far, Tesla China has secured several apologies and legal wins from owners who claimed that their cars featured “brake failure” defects, later proven false."

Tesla owner who claimed “brake failure” ordered to issue formal apology in 10 days

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from the Teslarati

 

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A former Model 3 The case of a former Tesla Model 3 owner from China who claimed that his vehicle experienced “brake failure” and unintended acceleration has been ordered by a court to issue a formal apology to the company in 10 days. According to the court, the Model 3 owner was entirely responsible for the incident, establishing it as a case of driver error.

In 2020, the Tesla owner’s Model 3 was captured on camera accelerating and crashing into a parking lot. The driver was seriously injured during the incident. After the crash, the former Model 3 owner claimed his car experienced “brake failure” and “unintended acceleration.” Following a complete investigation by the Wenzhou Auto Engineering Society, it was concluded that the Tesla owner had actually pressed on the accelerator when the incident happened. The brakes were never engaged.

Despite the results of the Wenzhou Auto Engineering Society’s investigation, the driver continued to blame Tesla for causing the accident. The former Model 3 owner reportedly spread several baseless claims about the incident. At one point, he shared the accident investigation report online, asking users for help analyze the results. These actions ultimately resulted in Tesla China filing a suit against the Model 3 owner for defamation.

According to a court filing last month, Tesla China won its case against the Model 3 owner. In a ruling dated September 20, 2021, the court ordered the Tesla owner to pay a fine of RMB 50,000 ($7,700) for damages. The court also ordered the vehicle owner to apologize to Tesla within 10 days for at least 90 days on social media. The apology must be submitted to the court for approval before it is posted on social media.

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Tesla China was involved in several reports of “brake failure” and “unintended acceleration” claims earlier this year. This has caused some issues with the company’s image among conventional car buyers. However, the narrative changed when Tesla China adopted a more assertive legal strategy. So far, Tesla China has secured several apologies and legal wins from owners who claimed that their cars featured “brake failure” defects, later proven false.

 

 

Edited by Randy W (see edit history)
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Tesla Has Clever Plan To Stop Idiots From Blocking Superchargers
This childish behavior shouldn't need a solution, but Tesla has come up with one anyway.

from CarBuzz

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These mechanisms pop up from the floor rendering the parking space unusable until it is unlocked. In 2019, these mechanisms started appearing around Chinese supercharging spots but required the user to download a third-party app to scan a QR code and unlock the mechanism. It is unclear whether the app asked for any sort of credentials to confirm that the user was actually driving a Tesla vehicle, but it seemed to work. Tesla now seems to be officially backing the idea by incorporating the unlocking system into its native mobile app. In a tweet posted by 42How, the tech media platform, the company shows new users how to use the unlocking function on the Tesla app, and it seems easy enough.

 

Edited by Randy W (see edit history)
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Volkswagen brought a concept to China which is known as "4S". Jiaying doesn't say we're going to the dealership, nor does she use the name of the dealer.

She says instead that we are going to "4S".

4S stands for Sales, Service, Spare Parts, and Surveys (customer feedback) - the concept that car dealerships would do more than just sell cars.

Volkswagen used to be proud of its “better understanding of China.” Now the German auto giant found its advantage in conventional-fuel vehicles fading while it experienced setbacks in the switch to electric cars.

from the Sixth Tone on Facebook 
https://www.facebook.com/sixthtone/posts/3183544878631017

Volkswagen’s EV Missteps in China
Once a leader in helping China create its modern auto industry, the German auto giant is stumbling with its electric transition in the world’s most dynamic EV market.

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Under a bold transition plan, the group aims to make battery-electric vehicles account for 50% of its output by 2030 and almost 100% by 2040.

Volkswagen sold 4.23 million cars in China in 2019. But in 2020, the total declined by 9.1%. In 2021 as China’s passenger vehicle market grew 6.5%, Volkswagen’s sales fell by a further 14.1%. That was also the year Volkswagen started selling its first electric car model, the ID.4, in China.

“This decline is difficult to reverse in the short term, and if Volkswagen does not adjust soon, the decline could accelerate in 2022,” said Zhou Lijun, chief analyst at Yiche Research Institute. Volkswagen has failed to keep up with changes in mainstream consumers’ demand in China, he said.

China is VW’s biggest market, contributing 40% of sales and half of profits. Through two joint ventures — SAIC Volkswagen Automotive Co. Ltd. and FAW-Volkswagen Automobile Co. Ltd. — the group sells locally made models including Audi, Škoda and Jetta. It also imports Porsche, Lamborghini and Bentley vehicles.

 

 

 

 

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U.S. carmaker Tesla Inc. announced Sunday that it will build a new Megafactory in Shanghai, which will be dedicated to manufacturing the company's energy storage product Megapack

from China Xinhua News on Facebook 
https://www.facebook.com/XinhuaNewsAgency/posts/pfbid02FhWpaqn1mdo61yYp5oWvSjkBwm9PTSPzVxmDYwx3aJeQS1MrCdGfUVrmypM3yia7l

 

 

 

Tesla to build new Megafactory in Shanghai

Source: Xinhua

Editor: huaxia

2023-04-09 16:25:30

   

SHANGHAI, April 9 (Xinhua) -- U.S. carmaker Tesla Inc. announced Sunday that it will build a new Megafactory in Shanghai, which will be dedicated to manufacturing the company's energy storage product Megapack. 

 

 

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Tesla might lose ground to local pretenders, as likes of Xpeng, BYD steal a march with made-for-China EVs

  • Tesla’s ‘international models’ are not the up-to-date smart vehicles that many rich Chinese consumers desire, executive at advisory firm Suolei says
  • Some Chinese smart car assemblers superior to global rivals in terms of digital cockpit development: JD Power consultant

from the SCMP

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Chinese EV buyers are particularly attracted by the bells and whistles in such cars, like their digital cockpits, their on-board entertainment systems and the ability of their voice-recognition systems to recognise various Chinese accents.

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“Our conclusion is that Chinese consumers are more keen on new [in-car] technologies that can bring comfort and entertainment to them,” said Jeff Cai, chief consultant at the JD Power China auto product practice, who concluded that the top 10 cars on the list understand at least 87 per cent of voice commands by Chinese consumers.
“For example, they prefer strong voice-command functions, which is very different from western drivers. Indeed, some Chinese smart-car assemblers have proved to be superior to global rivals in terms of digital cockpit development.”

 

 

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Exclusive: Tesla has begun producing in Shanghai a version of the Model Y to be sold in Canada this year, the first time it will ship cars to North America from China https://reut.rs/3n1arYA

from Reuters on Facebook 
https://www.facebook.com/Reuters/posts/pfbid0idzaYLTnBBCFEwqmPov6FXEVe4yKbDiFG7tmeCURkjbuZJS3iTv5FheZcvjsiGb3l

 

Exclusive: Tesla readies export of Model Y to Canada from China

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The move would connect Tesla's (TSLA.O) biggest and most cost-efficient factory in the world to North America, its largest market. The Model Y is the electric vehicle (EV) maker's best-selling model globally.

Over the weekend, Tesla posted on its website that it would offer a new, cheaper version of its Model Y in Canada, a rear-wheel drive variant of the SUV-styled crossover priced C$10,000 ($7,377.90) lower than the long-range version of the vehicle available in that market.

Tesla's website showed that customers in Canada could take delivery of the new version of the Model Y between May and July.

 

 

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Tesla Finally Refreshed the Model 3 and Went With China First

The EV in production since 2017 receives a light fascia adjustment, a reworked interior, and more range via updated aero.

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from Road & Track

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According to a report from Reuters, this updated Tesla Model 3 is slated to enter production at Tesla’s Shanghai plant, which will supply vehicles to the rest of Asia, Europe, and the Middle East markets. Not only is this the first Tesla to make its debut in China, but it is also the brand’s first major product change since the Model Y made its arrival back in 2020. Reuters was also the first publication to report on the revised Model 3 project last year, which was given the codename Highland.

The update starts in the styling department, as the Model 3 finally gets a new face. The lighting elements are now thinner and more reminiscent of the larger cars, while the fog lights have been ditched from the lower valence. The rear lightning also receives some tweaks, but the profile is unmistakably unchanged. That’s not too much of a surprise considering the Model S has remained relatively unchanged for over a decade. Other exterior tweaks include a new set of wheels.

 

 

 

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