Chinese authorities hold regulatory talks with Tesla

Chinese authorities held regulatory talks with representatives from Tesla over consumer complaints about car malfunctions, according to a statement released on Monday by China's market regulator.

China's State Administration for Market Regulation, Ministry of Industry and Information Technology, the Cyberspace Administration of China, Ministry of Transport, and the fire and rescue bureau of the Ministry of Emergency Management talked with staff from Tesla's branches in Beijing and Shanghai for problems reported by consumers concerning the cars' abnormal accelerator operation, battery fires and over-the-air updates.

China's State Administration for Market Regulation said in a statement that China urges Tesla to strictly abide by China's laws and regulations to protect the legitimate rights and interests of consumers.

Tesla, in response, said it would thoroughly investigate the problems reported by consumers and strengthen inspections. The company announced earlier this week to recall over 36,000 vehicles in China over potential touchscreen malfunction which may lead to safety risks.

The electric car maker earlier posted its first annual profit of $721 million, prompted by surging demand in China.