Tesla’s battle with the FUD (fear, uncertainty, doubt) campaign in China continues after a Model X owner claims the brakes on his all-electric SUV are faulty. The man was caught admitting that the story is fabricated, telling local media that “I know my car has nothing wrong with it.”
Over the past several months, Tesla has been sparring with owners in China who appear to be a part of an effort to derail the company’s momentum in the country. It all started a couple of months ago at the Shanghai Auto Show when a woman invaded Tesla’s booth at the event by jumping on top of a Model 3 and claiming that her brakes had failed during a drive with her father. The drive ended in an accident, and she blames it on Tesla’s “faulty brakes.”
She was sentenced to serve a few days in jail and has made every attempt to make her case as public as possible. She has gone as far as spraypainting the car as it sat outside of a Tesla showroom in China and has also denied any attempt that Tesla has made to resolve the issue. The automaker published a lengthy statement in May, indicating that it had offered to pay for a third-party company to assess the potential of a brake issue while paying for the study. She denied this and also said that data released by the automaker, which proved that the owner’s father, who was driving the vehicle at the time, traveled at excessive speeds during the journey and also had utilized the brakes successfully many times in the moments leading up to the accident, could have been fabricated or tampered with by Tesla.
The Tesla Model Y is leading China’s electric SUV segment by a wide margin
This hasn’t been the only instance, and those who have decided to turn against the automaker have made it abundantly clear that there will be more attempts in the future to claim that Tesla’s vehicles are faulty and dangerous.
Model X Owner claims faulty brakes, Tesla responds
Now, a Model X owner in China named Mr. Wen is claiming that his vehicle has faulty brakes and is demanding that Tesla provide him with a newly refreshed Model X.
According to a statement on Tesla’s Weibo page, Wen suffered an accident in his vehicle, and Tesla reached out to him to figure out the issue. “At present, the initial remote diagnosis of the cause of the vehicle alarm is the right front wheel speed sensor, and the vehicle used by Mr. Wen at the time of failure…may be due to contamination of the wheel speed sensor or damage to the sensor line,” Tesla said (via @Ray4Tesla). “Mr. Wen’s vehicle has traveled more than 175,000 kilometers, which has exceeded the vehicle warranty.”
Tesla then suggested that the vehicle be towed to a Service Center in China so that it could be examined to determine the reason for failure and fixed properly. However, Wen has continued to drive the car over 800 kilometers, Tesla says, and has gone as far as claiming on the internet “that the vehicle has failed and it was dangerous.”
Tesla says it hopes that Mr. Wen will allow the company to conduct inspections and repair the car so it can be used normally as soon as possible.
Mr. Wen admits to media that “I know my car has nothing wrong with it”
According to Tesla, the blog Teslabot broke a recording of Mr. Wen admitting that the car has no issues. In a series of statements, he said, “I know my car has nothing wrong with it,” and “The coil is aging, or it is worn during the car wash. This is suspected to be the problem, my car will not have any major problems.”
Wen said that he didn’t have money to find media exposure and that “If you don’t make trouble, you can defend your rights normally, our police station will not participate.”
- Credit: Tesla Weibo via @Ray4Tesla
- Credit: Tesla Weibo via @Ray4Tesla
According to the post on Weibo, the media outlet Henan Guan Lei TV has deleted all of the reports of Tesla vehicle issues in China.
Unfortunately, this is not the first time that those who have claimed that Tesla’s vehicles have issues have admitted that their story was fabricated. It’s actually happened on several occasions, with many of the perpetrators admitting that their issues were made up for media attention.
Tesla has also battled falsified and non-verified reports of lackluster sales figures. Most recently, a claim that indicated Tesla’s registrations in China in May had reduced by 50% was shrugged off by the Secretary General of the Chinese Passenger Car Association.
What do you think? Let us know in the comments below, or be sure to email me at joey@teslarati.com or on Twitter @KlenderJoey.
News
Tesla CEO Elon Musk says flying cars are coming
Tesla CEO Elon Musk said that flying cars will be coming to the market, something that his own company has hinted at previously.
Musk said on X, in response to a post that read, “We were promised flying cars and all we got is infinite superintelligence for everyone,” “You will get flying cars.”
You will get flying cars
— Elon Musk (@elonmusk) August 12, 2026
The post rang back to when Musk teased flying and hovering capabilities for the Tesla Roadster, the company’s supercar that has been delayed more times than anyone cares to count. It was set for an unveiling earlier this year, but it was then pushed back to August. There is still no sign of it coming.
However, that does not mean it won’t. But one of the biggest features of the Roadster that was teased was a SpaceX package that featured cold gas thrusters on the rear end that would help with white-knuckle acceleration. Another set would face the ground and would help the Roadster gain small bits of altitude, potentially helpful to jump over obstacles.
Elon Musk hints at Tesla Roadster’s “hovering” abilities in SpaceX package
But it is not a straightforward thing for Musk. As a serial entrepreneur, he tends to spend his time on major disruptors; currently, his largest projects are artificial intelligence and compute power, as well as SpaceX’s launches that will eventually make life multiplanetary.
In the past, he has been critical of flying cars and has been in favor of tunnels, one of the big reasons he started the Boring Company. In 2017 at a TED talk, he said:
“There is a challenge with flying cars in that they’ll be quite noisy. The wind force generated will be very high. Let’s just say that if something’s flying over your head, if there are a whole bunch of flying cars all over the place, that is not an anxiety-reducing situation…You’re thinking, ‘Did they service their hubcap? Or is it going to come off and guillotine me as they’re flying past?’”
However, he’s never been against them. He has also said he’s in favor of both tunnels and flying cars.
Contrary to press reports, I’m not against flying cars. Just said it was important to consider both pros and cons.
— Elon Musk (@elonmusk) March 24, 2015
Most recently, Musk said that anyone who wants a flying car should be able to get one. This was stated last October on the Joe Rogan Experience:
“My friend Peter Thiel once reflected that the future was supposed to have flying cars, but we don’t have flying cars… I think if Peter wants a flying car, we should be able to buy one.”
Whether the Roadster will be Tesla’s flying car or potentially another one remains in the mind of Musk. Of course, the Roadster will have to make its way to production lines before we find out.
Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
Investor's Corner
Tesla has one big financial question to answer for investors: Morgan Stanley
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.


