First of all, do you think that Tesla (TSLA) will seize the largest share of China EV market in the future? It's not it can't do it, it may be a political question.
There were increasingly negative press about Tesla in China in recent months. Reportedly, a Tesla Model 3 exploded in an underground parking garage in Shanghai in January of this year. Recently, a woman who claimed to be a Tesla customer protested an alleged brake failure in her car at the company’s booth at the Shanghai auto show. There were many articles from large media websites which including state media said that Tesla drivers in the country losing control of their cars.
Tesla released a series of statements in the middle of the night to express its deepening regrets. From Monday's no compromise to Tuesday's apology and self-review, and Wednesday, Tesla said it was cooperating with the regulatory authorities to investigate these incidents, we can feel where Tesla's pressure comes from. It is reported that Tesla has recently been subject to traffic control in Guangzhou and prohibited Tesla cars to enter the highway.
Are Chinese EV makers already strong enough? Tesla's presence in China which drives the development of local EV companies such as Nio, Xpeng and LI AUTO. So what will happen to Tesla next? Musk previously said that China will become Tesla’s largest market in the world, perhaps that's a dream, remember that is China.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.