On Monday, China’s top regulatory body, The State Administration for Market Regulation, warned Tesla Inc. TSLA that it must strengthen internal management and abide by Chinese laws and regulations.
What Happened: In a statement posted to its website, SAMR says that it, along with four other government agencies, summoned both Tesla Motors Beijing and Tesla Co. Shanghai regarding consumer complaints of abnormal acceleration, battery fires and issues with remote vehicle upgrades.
See also: How to Invest in Tesla Stock
Why It Matters: Tesla isn’t used to such harsh words from Chinese government agencies.
Just last week, Tesla received approval for a new manufacturing process at its Shanghai Gigafactory.
On Friday, Tesla announced it was recalling 36, 126 Model S and X vehicles in China over issues related to touchscreen failures after receiving a safety warning from the National Highway Traffic Safety Administration in the U.S. back in January.
What’s Next: In response to the Chinese regulators, Tesla said in a statement it “sincerely accepts the guidance from government agencies and would deeply reflect on the deficiency in the company's operations, while improving self-inspection and self-discipline.”
Photo courtesy of Tesla.
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