Regulators and state media in China seem unhappy with Tesla Inc (NASDAQ:TSLA) and how it has been handling its business operations lately. The parties continue mounting pressure on the carmaker, criticizing it for “drowning a woman’s cry” over its product in a recent auto show.
Tesla conducted the auto show this week, and it needs to brace for the difficult times ahead in China. Business analysts opine that Tesla might end up encountering one of its worst public crises in the country. Market investors have also given out their perspective, outlining that Tesla risks losing a market that has remained rather crucial to its business growth and advancement over the years.
The crisis started on Monday when a woman stood on top of one of Tesla’s cars, protesting about the company’s substandard product. The woman claimed to be the company’s customer, and she had issues with her car’s brakes. She wore a T-shirt that showed her dissatisfaction with a car she claimed to have bought from Tesla. The words on her T-shirt read, “brakes don’t work.”
It was a low moment for Tesla to see the woman protest publicly about a break failure in what she claimed to be one of its products. Such complaints have been re-surfacing continuously over the recent months.
The Chinese social media users have posted severally, claiming that many drivers struggled with defective brakes. Tesla faces a major crisis as the woman’s protesting video continues making rounds on social media. The state media has also picked up the matter, airing it out live on news sources.
On Tuesday, the Shanghai police found the woman involved in the protest and disclosed her name to be Zhang. The police accused her of disturbing public order and said that she would be detained for five days.
Tesla defends itself
Tesla rushed to its defense, alleging that the woman got involved in a collision back in February. The company cites that the issue about the breaks must have resulted from the collision. Tesla insists that the woman violated the speeding regulations in place and that she was to blame.
The company has also disclosed that the woman was only interested in a refund and had persistently dismissed the need for a third-party inspection.
China isn’t taking the matter lightly and has been quick to describe Tesla as an arrogant carmaker.