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Wednesday, May 7, 2025

(Op-Ed) Tesla China has been very profitable legally–but is one thing nefarious actually afoot?


A latest report from the Related Press has highlighted the truth that Tesla China has been very profitable legally. Over time, Tesla China has seen a outstanding file in successful authorized circumstances in opposition to critics, from media shops and social media influencers to prospects. 

However whereas the report carried a tone that hinted that one thing nefarious was afoot, Tesla China’s authorized successes might merely be defined by a easy cause—it chooses to carry folks accountable.

The AP’s piece:

  • A take a look at the Related Press‘ piece on Tesla China’s aggressive authorized technique opens with the story of Zhang Yazhou, who held a protest on the 2021 Shanghai Auto Present alleging that her Mannequin 3 skilled a brake failure. 
  • Right here’s how the report framed the matter:
    • “Tesla has embraced an aggressive authorized technique in China to stifle its critics — suing its personal prospects. 
    • “That’s left some Tesla house owners determined. Zhang Yazhou protested publicly that her Mannequin 3’s brakes had failed and triggered an accident in 2021 that despatched her dad and mom to the hospital. Tesla stated that wasn’t true and sued her for defamation. A Chinese language courtroom ordered Zhang to pay the $1.1-trillion firm greater than $23,000 in damages and publicly apologize for her criticism.
    • “”I refuse to simply accept it,” stated Zhang, who appealed the decision. “As a client, even when I stated one thing fallacious, I’ve the precise to remark and criticize. I spoke about my emotions as a person of the automobile. It has nothing to do with damaging their popularity.””
  • The AP report additionally described Tesla China’s authorized victories as follows:
    • “Over the past 4 years, Tesla has sued no less than six automobile house owners in China who had sudden automobile malfunctions, high quality complaints or accidents they claimed had been brought on by mechanical failures.
    • “The corporate has additionally sued no less than six bloggers and two Chinese language media shops that wrote critically concerning the firm, in response to a evaluate of public courtroom paperwork and Chinese language media studies by The Related Press.
    • “Tesla gained all eleven circumstances for which AP might decide the verdicts. Two judgments are on attraction. One case was settled out of courtroom.
    • “Tesla has not solely gained the defamation circumstances it introduced in opposition to sad automobile house owners and significant journalists, it has additionally prevailed in lawsuits prospects have filed in opposition to it.”

Context issues:

  • Whereas it’s fairly widespread nowadays in a number of corners of the web to border Elon Musk and Tesla as evil entities that have to be eradicated, it is very important take a look at the context behind Tesla China’s authorized successes.
  • Tesla China’s success within the nation’s courtroom system will not be attributable to a nefarious causes in any respect. As an alternative, it might merely be attributable to one specific factor that the corporate is excellent at—in-vehicle knowledge.
  • Take the case of Ms. Zhang, for instance. When she alleged that her Mannequin 3 skilled brake failure, Tesla China merely provided the info from her automobile to show that the automobile’s brakes, the truth is, didn’t malfunction. 
  • The identical factor was true for social media influencers who allegedly confirmed Tesla’s autos experiencing brake failure.
  • Again in 2021, in the course of the peak of the brake controversy in China, a Tesla proprietor determined to reveal how his Mannequin X’s brakes had been allegedly failing. The proprietor later admitted that the video was for leisure functions solely.
  • A well-known blogger who alleged that Tesla’s automated emergency braking system was subpar additionally posted a public apology to Tesla China after the corporate’s authorized division pursued him. 
  • In that exact case, Tesla China was hardly throwing its weight round, since netizens within the nation had been already calling out the blogger for urgent on the automobile’s accelerator throughout his automated emergency braking take a look at.
  • General, Tesla China’s lengthy string of authorized victories appears to be as a result of firm’s willingness to carry critics accountable when wanted, in addition to the target knowledge that’s offered by its autos.

The whipping boys of media:

  • Elon Musk has a excessive tolerance for ache, and Tesla does too, at occasions to the detriment of the corporate’s shareholders.
  • This has triggered media shops, social media influencers, and normal netizens to casually throw out wild accusations in opposition to the CEO and the electrical automobile maker.
  • This has been particularly notable just lately amidst Elon Musk’s work with DOGE
  • However whereas that is the established order in america, Tesla China’s administration workforce requires a extra assertive authorized technique—one that will permit the corporate to thrive on this planet’s best and difficult electrical automobile market.

Don’t hesitate to contact us with information ideas. Simply ship a message to simon@teslarati.com to offer us a heads up.

(Op-Ed) Tesla China has been very profitable legally–however is one thing nefarious actually afoot?








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