Monday, September 15, 2025

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Tesla Receives Warning from Chinese Regulators Over its Quality Control Issues

Despite Tesla’s history in China being riddled with scandals, including forced recalls, constant price cuts, and Gigafactory quality control nightmares, Elon Musk has thus far been successful in evading any major ugly press coverage. However, all good times eventually come to an end, as now the Chinese government has allegedly begun taking a closer look at Tesla’s compounding mishaps.

According to Bloomberg, Tesla has been summoned by the State Administration for Market Regulation (SAMR), as well as four other Chinese state departments, following the outpouring of numerous customer complaints regarding quality issues. The regulators warned Tesla to abide by Chinese laws and regulations, as well as increase its internal quality control in order to ensure safety of its products. Headlines of the meetings came out early Monday, causing Tesla shares to slip on the news.

However, the decline soon reversed course, after Tesla revealed that it has bought $1.5 billion in Bitcoin, sending Tesla shares soaring. Once again, the EV maker’s sub-par quality control measures and operational shortcomings appear to be discounted from the stock price, and instead replaced by the latest non-production or manufacturing-related conundrum to blanket Musk’s Twitter.


Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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