Tesla Is on Thin Ice With Chinese Regulators

Elon Musk has done a better job at selling and making cars in China in just two years than he has in the U.S. over the past decade. As a foreign business, he’s also had a smooth ride with the authorities — until recently.

Last Month, a Tesla Inc. owner at the Shanghai Auto Show protested the company by jumping onto the roof of a Model 3 and alleging faulty brakes had landed her father in hospital. Footage of the incident pitched the company into the center of a Chinese social media storm. That came just as the company announced blowout earnings in the country, with China contributing around 30% of revenues in the March quarter. It’s become an ongoing saga, and regulators have now stepped in.