Tesla Inc TSLA has apologized to the State Grid Corp. of China after an employee made a claim to a customer that their car was damaged due to a grid overload, Bloomberg reported Monday.
What Happened: The incident, purportedly caught on video that went viral, is related to the customer’s car not starting after being charged at a charging station, according to Bloomberg.
The utility’s Nanchang branch dismissed the allegations, saying the power grid has been “operating at a stable voltage, and no abnormality has been detected.”
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Tesla issued an apology in a video saying, “we are deeply sorry for the misunderstanding and would like to apologize to the Nanchang Power Grid for the inconvenience caused,” as per Bloomberg.
The Elon Musk-led company said it had resolved the problem with the customer and was carrying out its own tests and investigations as to what caused the failure.
Why It Matters: China is an important market for Tesla. Wedbush analyst Daniel Ives said in November that 40% of Tesla’s sales in 2022 could be in the country.
Last month, the company’s entire first-quarter supply of Model Y vehicles was sold out days after orders opened.
The Palo Alto, California-based automaker faces stiff competition in the East Asian country from homespun companies like Nio Inc NIO, Xpeng Inc XPEV, and Li Auto Inc LI and foreign rivals like General Motors Company GM.
Price Action: Tesla shares closed nearly 5.8% higher at $839.81 on Monday.
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