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Tesla Said To Be Beefing Up Government Relations Team In China Amid Intense Regulatory Scrutiny

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Tesla Said To Be Beefing Up Government Relations Team In China Amid Intense Regulatory Scrutiny

Tesla Inc (NASDAQ: TSLA) is stepping up engagement with regulators and strengthening its government relations team in China where it is facing scrutiny over safety and customer service complaints, Reuters reported on Monday — citing industry sources.

What Happened: Tesla executives have, in recent weeks, participated in four policy discussions on topics ranging from auto data storage, vehicle-to-infrastructure communication technologies, car recycling and carbon emissions, according to the Reuters report.

The California-based company is reportedly yet to make any firm commitments.

See Also: Will Tesla Shanghai Auto Show Incident Be A 'Watershed Event' For Rise Of Local Rivals Like Nio, Xpeng?

Tesla is also ramping up its government relations team in China where it plans to hire managers who will update policy databases and maintain relationships with government and industry associations, as per Reuters.

The vacancies that were advertised on China’s social media app WeChat called for managers who can develop relationships with government and industry body representatives and "build a harmonious external environment to support Tesla's business development in the regional market."

See also: How to Invest in Tesla Stock

Why It Matters: Tesla has recently been facing rough weather in China, a market that contributes nearly 30% of the electric vehicle maker's global sales and is its second-largest market after the United States. Tesla can't afford to make any wrong moves in China where several homegrown EV players, new entrants and legacy automakers are vying for a piece of the country's lucrative EV opportunity.

In February, the regulators summoned the electric vehicle maker over consumer reports of battery fires, unexpected acceleration and failures in over-the-air software updates. 

The Chinese military in March banned Tesla cars from entering its complexes over security concerns related to in-vehicle cameras and then last month the EV maker became a media and regulatory target after a customer at the Shanghai auto show protested alleged malfunctioning of brakes, the videos of which became viral.

Price Action: Tesla shares closed 4.79% higher at $709.44 on Friday.

Read Next: Apple, Tesla Earnings Reports Show An Increasing Reliance On China As A Market

 

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Posted-In: China electric vehicles Elon MuskGovernment News Regulations Global Tech Best of Benzinga

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