1/6) @elonmusk looks down on Chinese customers b/c they don't buy much FSD, so slips them the older AP version w/out notifying customers or authorities.— @Motorhead, Toucher of Own Face (@BradMunchen) March 5, 2020
* Chinese media cry "fraud"
* 2 laws were broken
* March shipments delayed
* Dozens of lawsuits
* Parts shortage at Fremont?
2/6) Great Chinese article saying Apple could never use A11 chips for an iPhone they said had an A12 chip in it.— @Motorhead, Toucher of Own Face (@BradMunchen) March 5, 2020
Chinese auto mfg laws have strict codes for core parts being used. March sales could be halted b/c laws say cars w/out stated components can't be licensed. pic.twitter.com/28k8ru1ECK
3/6) By not telling MIC Model 3 customers that their car had an older, less powerful chip in it, $TSLA committed "fraud" under Article 55 of China's Consumer Rights Protection Law.— @Motorhead, Toucher of Own Face (@BradMunchen) March 5, 2020
This led to dozens of lawsuits & raised the ire of the Chinese, who are sick of getting cheated. pic.twitter.com/JT64Qe7Kr0
4/6) Recalls or lawsuits won't hit profits that much, but $TSLA is tarnishing its reputation in China–where consumers are stronger & where $TSLA needs to sell lots of overpriced cars.— @Motorhead, Toucher of Own Face (@BradMunchen) March 5, 2020
The big question from all this: why did $TSLA blame it on "supply chain disruption"?
5/6) If there is a shortage of V3.0 chips due to COVID-19, $TSLA just admitted to disruption in output at Fremont.— @Motorhead, Toucher of Own Face (@BradMunchen) March 5, 2020
This could be why $TSLA gave the Chinese the V2.5 chip: more V3.0 supply for Fremont, where FSD cars have higher demand.
6/6) By secretly selling the Chinese lower-spec Model 3s, @elonmusk is being foolishly reckless. Over 2 quarters of losses at GF3 & the CCP will have no mercy if the plug needs to be pulled.$TSLAQ— @Motorhead, Toucher of Own Face (@BradMunchen) March 5, 2020
Link to Chinese article: https://t.co/RULh1iF3Ty