Elon Musk and Tesla Are in a Bad Spot

Tesla, the American electric vehicle manufacturer, is facing a mini scandal in China, its second largest market, as Chinese employees protest against the reduction of their bonuses.

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The bonus reduction is reportedly due to a safety incident in which an employee died at the Tesla factory in Shanghai in February 2021.

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Tesla's managers have reportedly told employees that their performance bonuses were impacted by the safety incident.

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Elon Musk, Tesla's CEO, has been alerted and is looking into the situation, but has made no further comments.

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Tesla's Shanghai factory produces the company's two most popular models, the Model 3 and the Model Y, and serves the Asian and European markets. It has a production capacity of over 750,000 vehicles per year.

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China is an important market for Tesla, accounting for a significant portion of the company's sales.

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The drop in bonuses in Shanghai comes as Tesla has launched a price war in the country, which experts fear will eat into the group's profit margins.

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Last week, Tesla announced that it will build a second plant in Shanghai for the production of its Megapack energy storage system.

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