Tesla is facing increasing scrutiny in China following the recent revelation that it has sued at least six vehicle owners who reported mechanical failures and six bloggers and two media outlets that criticized the company.
This unusual behavior by the car manufacturer has raised concerns about its approach to criticism and media relations in the country.
According to a report by the Associated Press, Tesla is the only foreign automaker with a wholly owned factory in China, located in Shanghai, which has become its main production center and source of income.
Tesla and the Chinese Government do not want negative criticism
The close relationship between Elon Musk and officials of the Chinese Communist Party, established in a 2018 agreement, has benefited the company with regulatory advantages, loans at preferential rates, and tax subsidies.
The report also alleges that local media have been instructed to avoid negative coverage of Tesla, describing the company as a key entity protected by the Shanghai government.
This has resulted in generally favorable coverage of the brand among Chinese journalists. One journalist even mentioned that they were instructed not to write criticisms, highlighting the state’s influence on the treatment of Tesla.
Likewise, the report details how Tesla has won approximately 90% of the lawsuits it faces against customers alleging defects. Consumer complaints about the lack of communication from the company have led to lawsuits, which, in some cases, end in defeats for them, in addition to being sued by Tesla in response.
The situation of Zhang, one of the plaintiffs, highlights how Tesla has come to subordinate effective communication with its customers to aggressive legal practices, an approach that some consider harmful to the company’s long-term image.