Electric vehicle automaker Tesla takes on Chinese e-commerce company Pinduoduo in a heated exchange which stemmed from the latter’s campaign last month of reselling the company’s Model 3 at marked down prices.
The campaign offer, a group buying campaign which was launched last month, offered the Tesla Model 3 at a discounted price – 40,000 Yuan less than the regular price of the automaker in the local market. This led to the EV-maker to clarify soon after that it has no involvement in the campaign.
Then, the situation escalated when Tesla canceled Pinduoduo’s orders from its company. They then suggested customers to directly buy the cars from the company’s official outlets.
Tesla, even though considers the China market an important part of its sales revenue, has long maintained its direct-sale policy to control their branding. This is a complete antithesis of what Pinduoduo does, thus ruffling the EV company’s feathers. Elon Musk even announced that they are willing to lend a hand to customers if they want to sue the Chinese e-commerce company.
Pinduoduo, a publicly listed entity on the New York NASDAQ Stock Market, which has a large following in lower-tier cities and rural areas all over China, has been known for offering brands at lower prices in its campaigns. But it has received its fair share of controversies. First, it is accused of peddling off knockoffs in its platform. Different luxury brands such as La Mer also raised concerns that they did not permit the offering of their products in any of Pinduoduo’s campaigns.