BEIJING // Tesla said on Wednesday that one of its cars had crashed in Beijing while in ‘autopilot’ mode, with the driver contending sales staff sold the function as ‘self-driving’, overplaying its actual capabilities.
Tesla said it had reviewed data to confirm the car was in autopilot mode, a system that takes control of steering and braking in certain conditions.
The company, which is investigating the crash in China’s capital last week, also said it was the driver’s responsibility to maintain control of the vehicle. In this case, it said, the driver’s hands were not detected on the steering wheel.
The crash, Tesla’s first known such incident in China, comes months after a fatal accident in Florida, which turned up pressure on auto industry executives and regulators to tighten rules on automated driving technology.
A 33-year-old programmer at a tech firm, Luo Zhen was driving to work and engaged the autopilot function as he often does on Beijing’s highways, he said in his first interview with international media.
Luo, who filmed the incident with a dashboard camera, said his car hit a vehicle parked half off the road. The accident sheered off the parked vehicle’s side mirror and scraped both cars, but caused no injuries.
“The driver of the Tesla, whose hands were not detected on the steering wheel, did not steer to avoid the parked car and instead scraped against its side,” a Tesla spokeswoman said in an emailed response.
“As clearly communicated to the driver in the vehicle, autosteer is an assist feature that requires the driver to keep his hands on the steering wheel at all times, to always maintain control and responsibility for the vehicle, and to be prepared to take over at any time.”
Luo, however, blamed the crash on a fault in the autopilot system and said Tesla’s sales staff strongly promoted the system as ‘self-driving’.
“The impression they give everyone is that this is self-driving, this isn’t assisted driving,” he said.
Interviews with four other unconnected Tesla drivers in Beijing, Shanghai and Guangzhou also indicated the message conveyed by front-line sales staff did not match up with Tesla’s more clear cut statements that the system is not “self-driving” but an advance driver assistance system (ADAS).
These Tesla owners all said salespeople described the cars’ function in Chinese as “self-driving”, a term the company generally avoids using in English, and took their hands off the wheel while demonstrating it.
“They all described it as being able to drive itself,” said Shanghai resident Mao Mao, who bought a Tesla Model S last year.
The term “zidong jiashi” appears several times on Tesla’s Chinese portal, which is most literally translated to mean “self-driving”. It is also the term for airplane autopilot, leaving room for confusion among consumers.
“We have never described autopilot as an autonomous technology or a ‘self-driving car,’ and any third-party descriptions to this effect are not accurate,” the Tesla spokeswoman said.
Tesla does not regularly announce its sales data for China, where it has faced tough local competition, and it is not clear how many cars in the country have autopilot, an add-on feature that costs more than 27,000 yuan ($4,000) extra.
The company struggled to sell its high-tech electric cars in China at first due to distribution issues and widespread concerns about charging vehicles.
There is no clear regulation on self-driving cars in China as the country is in the midst of drafting its policy towards the technology. Under current Chinese law, drivers must keep two hands on the wheel at all times.
China’s Ministry of Industry and Information Technology did not respond to faxed questions asking about the legality of self-driving cars, including Tesla’s autopilot function. The Ministry of Transportation did not reply to a request for comment.
Unsatisfied with Tesla’s initial response to his crash, Luo posted pictures and a video of the crash on Chinese social media platform Weibo describing the incident and criticizing the company.
Reuters
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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The biog
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Favourite books: Start with Why by Simon Sinek and Good to be Great by Jim Collins
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Inspiration: Sheikh Zayed's visionary leadership taught me to embrace new challenges.
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