CATL refutes reports that Tesla sold discounted defective electric cars to its employees

CATL refutes reports that Tesla sold discounted defective electric cars to its employees

Contemporary Amperex Technology Company, Limited (CATL), a China-based global leader in lithium-ion battery manufacturing and one of Tesla Motors’ suppliers, has refuted the rumor that Tesla is selling defective electric cars at a discount to the battery giant’s employees.

Palo Alto, California-based Tesla has been suffering severe criticism in China, as Chinese media repeatedly attacked it over a slew of different issues, some of which were more serious than others. For instance, a media report criticized the American electric car maker alleging that it stored customers’ personal data.

One of those concerns included a rumor that started swirling across China in the recent past. It is a fact that Tesla offered discounted EVs to employees of CATL, but some media reports alleged that the CATL employees were are being offered defective EVs by the American EV manufacturer.

As Tesla does not offer discounts on its EVs, its decision to sell its vehicles to CATL employees at a discount raised some questions. Some people, who claimed to be CATL employees, took to social media and alleged that the EVs were being discounted by Tesla because they were defective. According to a recent report, CATL helped Tesla in reducing inventory in the country by encouraging its employees to purchase its Tesla’s defective EVs.

The rumor gathered enough steam that several media reports severely criticized Tesla as well as CATL, forcing the Chinese battery maker to come forward and officially dispel such reports.

China’s Global Times, a newspaper controlled by the government, reported that CATL finally denied the claim that its employees were sold defective EVs by Tesla.

The Global Times reported, “China’s major electric vehicle (EV) battery manufacturer Contemporary Amperex Technology Co Ltd (CATL), also the battery supplier of Tesla China, denied online rumors claiming it has forced its employees to buy defective Tesla vehicles.”

Refuting the rumor, CATL explained that it was not Tesla that was discounting EVs. The discount was actually being offered by the battery maker as part of a program to help its employees switch from conventional internal combustion engines to environment-friendly EVs. CATL further explained that discounts were also offered for EVs made by other manufacturers, but Tesla topped the list in the program simply because of its popularity.

Meanwhile, another report has claimed that increasing negativity about Tesla in Chinese media has resulted in a significant decline in net new orders for its EVs.