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The Impact of Tesla's Brand Scandal in China on Consumer Loyalty
- 1 The University of Queensland, St Lucia QLD 4072, Australia
* Author to whom correspondence should be addressed.
Abstract
Since its establishment in 2003, Tesla has been a pioneer in the global electric vehicle industry and entered the Chinese market in 2014, quickly becoming a leader. However, its success has been accompanied by controversies and scandals. In 2020, a sudden price reduction sparked dissatisfaction among car owners, leading to legal actions. Additionally, incidents of vehicle self-ignition, charging failures, and braking issues in China have raised widespread consumer concerns. Tesla executives often deny responsibility, blaming external factors or improper operation, which further damages the brand image. This report uses qualitative analysis to explore the impact of Tesla's public relations crises in China on consumer loyalty. Research shows that product quality, service level, and technological capability are key factors. Despite Tesla's achievements, its improper handling of crises has weakened its brand. To restore trust, Tesla must focus on consumer needs and expectations, improving service quality.
Keywords
Tesla, scandal, public relations crisis, customer loyalty
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Cite this article
Li,S. (2025). The Impact of Tesla's Brand Scandal in China on Consumer Loyalty. Advances in Economics, Management and Political Sciences,154,7-13.
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