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Tesla Apologizes To China State Power Company After Viral Video

Tesla Apologizes To China State Power Company After Viral Video

Tesla Inc (NASDAQ: TSLA) has apologized to the State Grid Corp. of China after an employee made a claim to a customer that their car was damaged due to a grid overload, Bloomberg reported Monday.

What Happened: The incident, purportedly caught on video that went viral, is related to the customer’s car not starting after being charged at a charging station, according to Bloomberg.

The utility’s Nanchang branch dismissed the allegations, saying the power grid has been “operating at a stable voltage, and no abnormality has been detected.”

See also: How to Invest in Tesla Stock

Tesla issued an apology in a video saying, “we are deeply sorry for the misunderstanding and would like to apologize to the Nanchang Power Grid for the inconvenience caused,” as per Bloomberg.

The Elon Musk-led company said it had resolved the problem with the customer and was carrying out its own tests and investigations as to what caused the failure.

Why It Matters: China is an important market for Tesla. Wedbush analyst Daniel Ives said in November that 40% of Tesla’s sales in 2022 could be in the country.

Last month, the company’s entire first-quarter supply of Model Y vehicles was sold out days after orders opened.

The Palo Alto, California-based automaker faces stiff competition in the East Asian country from homespun companies like Nio Inc (NYSE: NIO), Xpeng Inc (NYSE: XPEV), and Li Auto Inc (NASDAQ: LI) and foreign rivals like General Motors Company (NYSE: GM).

Price Action: Tesla shares closed nearly 5.8% higher at $839.81 on Monday.

Related Link: Tesla Takes Legal Action Against Chinese News Outlet Over Report Of 'Sweatshop' Conditions At Shanghai Gigafactory: Global Times

Click here to check out Benzinga’s EV Hub for the latest electric vehicles news.


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