15 Feb 2025 10:46 AM IST Elon Musk’s Tesla aggressively sues car owners and media in China, forcing public apologies Tesla has taken legal action against critics in China, using lawsuits to suppress negative publicity and maintain its privileged position in the country. Zhang Yazhou was sitting in the passenger seat of her Tesla Model 3 when she heard her father’s panicked voice: "The brakes don’t work!" Approaching a red light, her father swerved around two cars before plowing into an SUV and a sedan, ultimately crashing into a large concrete barrier. Stunned, Zhang gazed at the deflating airbag in front of her. She could never have imagined what was to come: Tesla sued her for defamation for complaining publicly about the car’s brakes — and won. A Chinese court ordered Zhang to pay more than $23,000 in damages and publicly apologize to the $1.1 trillion company. Zhang is not the only one to find herself in Tesla's crosshairs. Over the last four years, Tesla has sued at least six car owners in China who reported sudden vehicle malfunctions, quality complaints, or accidents they claimed were caused by mechanical failures. The company has also sued at least six bloggers and two Chinese media outlets that wrote critically about Tesla, according to a review of public court documents and Chinese media reports by The Associated Press. Tesla won all 11 cases for which AP could determine the verdicts. Two judgments, including Zhang’s, are on appeal. One case was settled out of court. It is not common practice for automakers—in China or elsewhere—to sue their customers. But Tesla has pioneered an aggressive legal strategy and leveraged the patronage of powerful leaders in China’s ruling Communist Party to silence critics, reap financial rewards, and limit its accountability. Tesla's Record in China The AP review of Tesla’s record in China comes as Elon Musk wields significant influence in President Donald Trump’s new administration, leading an effort to shrink the federal government and oust employees deemed disloyal. His actions have raised concerns that Musk is weakening the U.S. system of checks and balances, in part, to benefit Tesla and his other companies. In the United States, Musk has found a powerful ally in Trump. Together, they have launched an assault on the federal government, freezing spending, suspending programs, and dismissing prosecutors, government watchdogs, and others that have traditionally acted as guardrails. Tesla officials in China and the United States did not reply to requests for comment. Tesla has thrived in a system where regulators, media, and courts must ultimately answer to the ruling Communist Party. The company has received unprecedented regulatory benefits, below-market-rate loans, and large tax breaks. Chinese journalists told AP they were instructed to avoid negative coverage of Tesla. A review of court documents shows Tesla won nearly 90% of civil cases over safety, quality, or contract disputes brought by customers. “The government gave Tesla a super status that put consumers in a very vulnerable position,” said Qiao Yudong, a former lawyer for American sports car company Saleen Automotive in China. “That’s why some consumers had to resort to extreme actions.” Zhang's Protest The February 2021 crash in central China’s Henan province sent Zhang’s mother and father to the hospital for four days. Zhang, who was unharmed, insisted the brakes had malfunctioned and filed a complaint requesting a refund and compensation. Tesla refused to turn over full pre-crash data from her car. Frustrated, Zhang protested publicly, draping her damaged car with a banner reading "Tesla brake failure" outside a dealership. She later took her protest to an auto show, donning a T-shirt reading "Brakes fail" and climbing onto a Tesla display model. Security guards hauled her out, and she was detained for five days. Tesla alleged that Zhang was not acting alone. A top executive speculated to Chinese media that she “had someone behind her,” claiming she wanted higher compensation. Outraged, Zhang sued Tesla for defamation. Tesla then sued her, alleging she deliberately spread false information and seeking 5 million yuan ($684,000) in damages. The Court Battles Tesla finally released the data from Zhang’s car, claiming it showed her father was driving nearly 120 km per hour (75 mph) and that the brakes had functioned properly. Tesla published the data publicly, including her vehicle identification number, leading to online harassment and threats against Zhang. Zhang sued Tesla again in March 2022 for invading her privacy. She lost both cases she brought against Tesla. Meanwhile, in May 2024, a Shanghai court ruled that her public complaints went beyond reasonable criticism and ordered her to publicly apologize and pay Tesla 170,000 RMB ($23,000). Zhang appealed the ruling, arguing that consumers have the right to criticize corporations. “I refuse to accept it,” she told AP. “Even if I said something wrong, I have the right to comment and criticize.” Her odds of winning the appeal appear slim. AP found 81 civil judgments in which car owners sued Tesla over safety, quality, or contract disputes. Car owners won only nine cases. A statement from the Shanghai High People’s Court to AP claimed that judgments result from “fair trials” based on "objective facts." The Power of Patronage Tesla's success in China has been bolstered by Li Qiang, the former party boss of Shanghai and now China’s premier. Under his leadership, Tesla built its first overseas factory in Shanghai in 2019, receiving regulatory advantages, low-interest loans, and tax breaks. Elon Musk unveiled the first Chinese-made Teslas in January 2020. That year, Tesla turned an annual profit for the first time, and Musk became the world’s richest person in January 2021. Tesla catalyzed China's electric vehicle boom, helping Chinese battery maker CATL become the world’s largest EV battery producer and Chinese automaker BYD surpass Tesla in global EV sales. “Tesla had a large part to play in that,” said Tu Le, managing director of Sino Auto Insights. “The way the government smoothed the way for Musk’s factory was critical.” Musk maintains close ties with Li Qiang, underscoring his complex position as both a businessman and a key figure in Trump’s inner circle. A Chilling Effect Safety advocates worry about Musk’s growing influence in the U.S., fearing federal investigations and safety initiatives Musk has opposed could be dismantled by the Trump administration. Tesla has faced numerous safety complaints and lawsuits in the U.S. over its Autopilot function, battery charging, alleged suspension defects, sudden braking, and faulty airbags. Some cases have been dismissed, while others resulted in settlements. Although Tesla has not publicly sued U.S. customers, Musk recently suggested on X that it “might be time” to sue media outlets for negative coverage. In China, Tesla has already succeeded in silencing critics. Chinese journalists told AP they were instructed not to write negatively about Tesla. The company has sued media outlets like PingWest and ifeng.com over critical reports, winning financial settlements and public apologies. Tesla's aggressive legal tactics extend beyond the media, targeting even car owners who suffered crashes. “Tesla used their legal advantages to bully Chinese car owners,” said Feng Shiming, an auto blogger and Tesla owner who was ordered to pay Tesla 250,000 yuan ($34,200) after writing about alleged brake failures. “Tesla wants to have a chilling effect,” he said. “They want to terrify people so they will be scared to say anything negative about Tesla.” ( Source : AP )