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Tesla‘s quality ranking drop in China amid public criticism and authorities’ investigation

July 23, 2021 6:46 pm

Tesla’s quality ranking dropped to below average while three leading Chinese electric vehicle startups still maintained top quality car, according to survey conducted by ccording to data analytics and consumer intelligence company J.D. Power.

Detail:

Tesla’s Model 3 ranked third in the midsize battery electric vehicle (BEV) segment, falling behind BYD Co’s Han BEV and Xpeng’s P7.

The survey inspected 3,975 vehicle owners for their opinion on 50 models from 28 different car brands.

The study measures new car quality based on experience of car buyers in China within the first two to six months of ownership. Nio, Xpeng and Li Auto are all listed in New York, which are considered as rivals to Tesla in China.

The results mark a drop for Tesla compared to last year's findings when a survey ranked  Model 3 on second place in its class, behind only Nio's ES7 sedan.

NIO’s ES6 now ranks highest in China’s luxury BEV segment, Xpeng’s G3 is the best compact BEV and Li Auto’s Li One took the top spot in the plug-in hybrid electric vehicle.

Context:

Tesla is dealing with public criticism and authorities’ investigation over car quality following some high-profile vehicles crashes.

On April 17, a Tesla model 3 lost control and spontaneously accelerated at an extremely high speed and ignited after crashed on the bridge in Zengcheng district, Guangzhong, causing a death of the driver.

In May, a Tesla rear-ended a truck at a high speed of 158 kilometers per hour in Shaoguan of China’s Guangdong province, leading to the immediate death of the driver.

The cause of the accident still remains unknown, but it has triggered new waves of concern over whether Tesla vehicle involves technical issues including brake failure risks.

At the shanghai auto show, a former Tesla owner protested in Tesla’s booth by climbing on top of a model 3 and loudly yelling that the company’s vehicle have deadly brake issues.

Despite all the challenges, Tesla still grew strongly in China thus far this year.

In the first half this year, Tesla sold more than 130,000 Model 3s and Model Ys in China, close to its full-year sales figure of 137,459 cars in 2020. During the same period, Nio delivered 41,965 vehicles, nearly tripling sales from a year ago. Xpeng sold 30,738, up by 458% year on year. Li Auto’s deliveries rose by 212% to 30,151.