Tesla Wins Majority of Defamation Cases Against Chinese Owners, Media

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Tesla Wins Majority of Defamation Cases Against Chinese Owners, Media
A stop sign stands near the Tesla logo at the Tesla factory on July 17, 2023 near Gruenheide, Germany. Sean Gallup/Getty Images/Getty Images

Tesla, the world's largest electric car maker, has been successful in a series of defamation lawsuits in China, targeting customers, media, and bloggers who criticized the company's cars.

The latest case involves Zhang Yazhou, who was in her Tesla Model 3 when her father's brakes allegedly failed, causing a crash.

After publicly sharing her experience, Zhang was sued by Tesla for defamation and ordered to pay over $23,000 in damages and issue a public apology.

This lawsuit is part of a larger trend in which Tesla has sued at least six car owners, six bloggers, and two media outlets in China, CBS News said.

The company's aggressive legal strategy has been criticized for silencing its critics and limiting accountability. Tesla won all of the lawsuits that were tracked by The Associated Press (AP), with two of the judgments, including Zhang's, currently under appeal.

Zhang's ordeal began when she was in the passenger seat of her Tesla Model 3. She recalled hearing her father's voice in panic: "The brakes don't work!" Despite trying to swerve around two cars, they crashed into an SUV, a sedan, and a concrete barrier.

After the accident, Zhang went public with her complaint about the car's faulty brakes, which led to Tesla suing her for defamation. In the end, a Chinese court sided with the company and demanded she apologize.

Tesla's Courtroom Dominance in China Raises Concerns Over Consumer Rights

Tesla's approach in China has been controversial. Unlike many other automakers, the company has resorted to legal actions against its customers who report malfunctions, accidents, or quality issues with their vehicles.

This strategy is not commonly seen in the automotive industry, raising questions about Tesla's reliance on powerful connections in the Chinese government.

The company's ties to the Communist Party have played a significant role in its success in China, securing favorable regulatory treatment, tax breaks, and loans.

Tesla has also been given a large amount of media coverage, much of which avoids negative stories about the company.

Tesla's influence in China extends to its success in court. According to the AP, Tesla won nearly 90% of civil cases related to safety, quality, or contract disputes with customers.

This pattern of favorable outcomes has raised concerns about the fairness of the legal system and the vulnerability of consumers.

Qiao Yudong, a former lawyer for the American company Saleen Automotive in China, noted that "The government gave Tesla a super status that put consumers in a very vulnerable position."

In contrast to its aggressive legal actions, Tesla's leadership, under Elon Musk, promotes an image of free speech.

Musk has often described himself as a "free speech absolutist," yet his company's legal tactics in China suggest a more controlling approach.

While Tesla has succeeded in most of its lawsuits, this has not been without controversy, especially considering that Zhang's case is still under appeal.

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Tesla, Lawsuit

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