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Tesla’s relationship with its Chinese operations has faced challenges recently, particularly concerning credibility. Elon Musk demonstrated trustworthiness when he dismissed rumors about export restrictions from China to the US, calling reports from Reuters "false news." However, the company's credibility has been questioned due to inconsistent messaging around pricing and production.
For instance, Tesla China repeatedly denied rumors of price cuts—initially on September 30th and again on December 5th—only for the company to later implement price reductions. Similarly, claims that the Shanghai plant was not undergoing output cuts or shutdowns were later contradicted by observable actions, such as actual reductions and closures.