Tesla under scrutiny in China, say industry sources

Electric automaker Tesla Inc, facing scrutiny in China over safety and customer service complaints, is increasing its engagement with the country’s regulators and beefing up its government relations team, industry sources said.

The automaker’s modification of strategy leading to more behind-the-scenes interaction with policymakers in Beijing compared to relatively little before shows the seriousness with which the automaker sees the setbacks in the country.

It also comes at a time when the country is attempting to regulate large and powerful private companies, especially in the technology sector, on concerns regarding their market dominance.

China is 2nd biggest market for Tesla.

Tesla is under scrutiny in China since the automaker’s vehicles have been banned from Chinese military complexes and housing compounds since March due to the concerns about sensitive data being collected by cameras built into automobiles.