Tesla Clashes With China E-Commerce Site Over Model 3 Promotion
A Tesla Model 3 outside the company's Gigafactory in Shanghai.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Tesla Inc. is entangled in an escalating dispute with Chinese e-commerce giant Pinduoduo Inc., which ran a promotion for Model 3 sedans that the U.S. carmaker says violated its policies.
At the center of the conflict, which surfaced last month, is Tesla’s direct-sales model. Unlike most carmakers that sell via franchised dealerships, Tesla has its own network of showrooms where customers can view a vehicle before placing an order online. Customers can also just go direct to the official online channel, which comes with a price-match guarantee.