Facing scrutiny, Tesla engages China regulators

Tesla is shifting gears and changing course on the way it deals with Chinese regulators as the electric car maker faces scrutiny over safety and customer complaints.

Industry sources tell Reuters that Tesla is boosting its interaction with Beijing regulators and beefing up its government relations team…. departing from Tesla's previous hands-off approach.

The shift comes after Tesla suffered recent setbacks in its second most important market, which is responsible for nearly one-third of its global sales.

In February: Chinese regulators questioned Tesla over consumer reports of battery fires, unexpected acceleration and over-the-air software updates that failed.

In March: Tesla cars were banned from entering military complexes over security concerns that in-car cameras were being used for spying, forcing CEO Elon Musk to issue a video refuting the claim.

China often discusses industry policies and standards with global and local companies, industry associations and think tanks. General Motors and Toyota typically take part in such meetings, but people familiar with the matter say Tesla had largely been missing from these closed-door gatherings.That, however, has changed in recent weeks, according to sources.

Tesla executives in China did not respond to a request for comment on Monday, which was a public holiday in China.