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Tesla battles new brake failure claim in China, owner admits story is fabricated

Credit: Tesla

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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.

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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.”

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.

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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.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Investor's Corner

SpaceX’s biggest earnings test yet lands Tuesday, and Tesla shareholders should be watching

SpaceX reports earnings Tuesday as Wall Street watches AI spending, Starlink growth and Tesla merger

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SpaceX reports third quarter results after the market closes Tuesday, with a webcast at 4:30 p.m. ET streamed on X, and Tesla follows a day later. Bloomberg consensus, cited by Pepperstone, calls for revenue of $12.89 billion, adjusted EBITDA of $6.62 billion and adjusted EPS near $0.15. That would be about 65% growth from the second quarter and SpaceX’s first profitable quarter since its IPO. Analysts expect roughly $6.4 billion from AI and $4.9 billion from Starlink, which is projected to reach 14.3 million consumer subscribers. Capital spending is forecast at $19.6 billion, leaving free cash flow near negative $11.6 billion.

The numbers matter because SpaceX has spent months trying to win over a skeptical market. It priced its record IPO at $135, spiked to $225.64, then sank near $105 in early August. Friday’s close of $146.03 sits about 28% below the June high. The Q2 report beat on revenue at $7.8 billion and put Starlink at 12 million subscribers, but $18.4 billion of capex hurt the stock. Since then SpaceX reached orbit on Starship Flight 14 with 26 Starlink V3 satellites, agreed to buy 800 MHz spectrum for about $8 billion as part of its Starlink Mobile push, and signed a fourth compute hosting deal in four months worth roughly $13 billion a year from December. Management is targeting more than 2 gigawatts of compute by year end and a $100 billion annualized revenue run rate. Evercore ISI, which raised its target to $275, said the quarter may be judged more on those targets than the reported figures

All of this sits under the Tesla merger question. Barclays analyst Dan Levy expects an all stock deal in which SpaceX buys Tesla at a premium, using reference values of $2.1 trillion and $1.5 trillion, and said an announcement would need to come by late October or early November to be voted on at Tesla’s December 6 annual meeting. Barclays estimates Musk would hold about 37% of the combined company and 56% of the votes. Musk said in July that combining companies cannot be discussed on an earnings call, but an investor question asking when SpaceX will merge with Tesla is sitting on SpaceX’s Q&A platform, and Teslarati has tracked how the Roadster demo revived the talk.

If a deal happens, Tuesday’s result would effectively set the price Tesla holders would receive. Their shares would convert into SpaceX stock, along with exposure to a company with a heavy investment on AI, while Tesla itself expects 2026 capex above $25 billion. A strong quarter and calmer spending would make that exchange easier to sell. Another round of heavy capex and a falling stock would make it harder.

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SpaceX’s Gwynne Shotwell just made a quiet gesture toward Tesla

SpaceX president Gwynne Shotwell quietly followed Tesla on X, and merger watchers noticed right away.

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SpaceX President and COO Gwynne Shotwell has started following Tesla’s official account on X, a small change that landed in the middle of a very loud merger conversation. Whole Mars Catalog joked about it on Sunday.

A follow is not an announcement, and neither company has said anything about a deal. What gives the moment weight is the timing. Barclays analyst Dan Levy has told clients that an agreement could come before Tesla’s annual meeting, which must be held by December 6, with SpaceX as the buyer in an all stock deal, as we reported after the Roadster unveiling. Wedbush’s Dan Ives has stuck with a 2027 timeline.

Shotwell is the executive most worth watching if the two companies do move closer. When Musk was asked at the All In Summit why Tesla and SpaceX remain separate, Shotwell sat next to him and said SpaceX personnel had already moved into xAI to fill leadership and engineering gaps. The businesses were integrating “faster than I thought,” she said, though “not fully integrated yet.” Her responsibilities have also grown since SpaceX absorbed xAI, and she now oversees operations that include Grok and the company’s AI compute buildout.

The financial links are already there. Tesla’s $2 billion xAI investment turned into a stake of less than one percent in SpaceX, the two share the Terafab chip project in Austin, and Musk exercised his 2018 Tesla options a week after SpaceX began trading, a sequence analysts flagged as giving SpaceX public shares to use in a deal. Musk holds about 20 percent of Tesla and controls 85.1 percent of SpaceX’s voting power, according to our earlier breakdown.

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The next test is close at hand. SpaceX reports its second earnings as a public company on Tuesday after the close, and Tesla follows on Wednesday. Musk told analysts in July that “we can’t talk about combining companies and that kind of thing on an earnings call,” so a direct answer is unlikely from either stage. Tesla shareholders can still submit and vote on questions through the Say portal until 4 p.m. EDT on Monday, and the merger is a recurring theme in the queue.

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Tesla Roadster owners to get “Flying Stunt Mode” and looping track access

Musk says Roadster owners can command the unveiling stunts autonomously, with a Texas looping track.

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Elon Musk says owners of the new Tesla Roadster will be able to ask the car to perform the stunts Tesla showed at its unveiling, with the car doing the driving itself. Musk made the comment Saturday in a reply on X to tech blogger Robert Scoble, and he added a promise of a looping track at Tesla’s Texas headquarters.

Scoble had argued that the person in the Roadster is not really driving it. In his description, the driver operates a computer that tells another computer what to do, with steering, braking and acceleration all handled by wire. Musk answered, “True. You will be able to ask the Roadster to perform any of the tricks shown autonomously, as it will be sentient. Also, we will have a wild looping track (crazier even than Hot Wheels) at our Texas HQ where you can test out your Roadster.”

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At the October 15 event outside Waco, the car drove up a curved ramp until it was upside down, flew off on cold gas thrusters, flipped and landed. It also hovered over a Cybercab, Cybertruck, Semi, Model Y and Model 3 while moving. As we noted in our breakdown of the three Roadster configurations, Musk said at the event that the car “literally is just going to puff itself up” to perform the maneuvers whenever an owner wants. Saturday’s reply adds that the car would run them on its own.

Tesla has described some of the hardware that would make that possible. The Roadster uses steer by wire with a yoke, and its cold gas thrusters rely on electric actuators for small adjustments in flight. A fan system under the car creates suction, which Tesla says is strong enough to hold it upside down, a setup we covered in our look at the Roadster’s fan system and thrusters.

Musk did not say when an autonomous stunt feature might arrive, how it would work, or what he means by sentient. He also gave no size, location or opening date for the Texas track. Production is planned for Giga Texas in 2027 or 2028, and Tesla says the car is not approved for public road use. The Rocket version, the one built to fly, is invite only.

The comment follows a week of Musk teasing the event, including his claim that the demo would be a banger, which we covered before the stream. Tesla reports third quarter earnings on October 21, and shareholders can submit and vote on questions through the Say portal until 4 p.m. EDT on October 20, according to our earnings Q&A preview. A question about autonomous Roadster stunts and the Texas track would be a quick way to get specifics from management.

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