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The Street
The Street
Luc Olinga

Tesla Has People in China Talking for the Wrong Reasons

China is one of Tesla's (TSLA) most important markets. 

Elon Musk's group has built a gigantic factory there -- called Giga Shanghai -- which serves the country and Asia. And it will serve Europe until the company opens its production site in Berlin-Brandenburg, Germany.

China, the world's largest automotive market, is key to Tesla's goal of producing and selling several million vehicles a year. The gigafactory in Shanghai has become the epicenter of production of the Model 3 and Model Y, respectively the Austin company's entry-level sedan and midsize SUV. 

Tesla aims to at least double its production capacity in this factory, which currently can turn out roughly 750,000 cars a year. Last year, more than half the 936,172 cars Tesla delivered worldwide were produced in Shanghai.

The Chinese authorities have also reserved special treatment for Tesla. The automaker is one of the few foreign-vehicle manufacturers that Beijing did not require to form a joint venture to enter the Chinese market. 

From Volkswagen  (VLKAF)  to GM (GM), most auto groups wishing to sell or produce cars in China have had to enter partnerships with local players.

A Crash of a Model X Driven by a Taiwan Star

This pass enabled Tesla to take advantage of tax credits, cheap land and low-interest loans Beijing granted particularly to encourage the population to embrace electric vehicles. Other cities in the country have pollution rates among the highest in the world

It is in this context that any information concerning Tesla often immediately arouses strong attention on social media in the country. 

Case in point: an accident that occurred on July 22 in the city of Taoyuan in Taiwan. The crash involved a Model X luxury SUV driven by the Taiwanese star and race driver Jimmy Lin Chih-ying.

According to images of the crash circulating on social networks, a good part of the front of the SUV burned. We can see the front in flames. According to local media, Jimmy Lin's son was also in the vehicle at the time of the accident.

The cause of the accident is not yet known but according to local media, Lin lost control of the vehicle, which crashed into a road barrier, causing the white Tesla to catch fire.

Lin, who is very popular in Taiwan, has head and shoulder injuries, according to the  media. He and his son were reportedly taken to a hospital. 

According to local media, the police suspect Jimmy Lin of being responsible for the accident. 

But while people awaited authorities' official explanation of the cause of the accident, plenty of comments appeared on social media, in particular on Weibo, the equivalent of Twitter (TWTR) in China. 

At last check, video of the accident had been viewed over a billion times on Weibo. The comments were largely critical of Tesla. 

Sharp Criticism on Social Media

"Why is it Tesla again, which is too scary. May father and son be safe!", said another Weibo user.

"Don't pay attention to who, just pay attention to 'Tesla', the accident rate of this car is a bit high," another Weibo user added.

Tesla did not immediately respond to a request for comment.

Images of the accident were also circulating on Twitter.

Even if the authorities determine that Jimmy Lin was responsible for the accident, the accident is a bad look for Tesla in China. Last spring, protesters claiming that Tesla cars were posed a danger to consumers attempted to block entry to the Shanghai International Automobile Industry Exhibition. 

In June 2021, Tesla had to recall 300,000 Model 3 and Model Y cars due to a technical glitch.

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