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(Op-Ed) Tesla China has been very successful legally–but is something nefarious really afoot?
A recent report from the Associated Press has highlighted the fact that Tesla China has been very successful legally. Over the years, Tesla China has seen a remarkable record in winning legal cases against critics, from media outlets and social media influencers to customers.
But while the report carried a tone that hinted that something nefarious was afoot, Tesla China’s legal successes may simply be explained by a simple reason—it chooses to hold people accountable.
The AP’s piece:
- A look at the Associated Press‘ piece on Tesla China’s aggressive legal strategy opens with the story of Zhang Yazhou, who held a protest at the 2021 Shanghai Auto Show alleging that her Model 3 experienced a brake failure.
- Here’s how the report framed the matter:
- “Tesla has embraced an aggressive legal strategy in China to stifle its critics — suing its own customers.
- “That’s left some Tesla owners desperate. Zhang Yazhou protested publicly that her Model 3’s brakes had failed and caused an accident in 2021 that sent her parents to the hospital. Tesla said that wasn’t true and sued her for defamation. A Chinese court ordered Zhang to pay the $1.1-trillion company more than $23,000 in damages and publicly apologize for her criticism.
- “”I refuse to accept it,” said Zhang, who appealed the verdict. “As a consumer, even if I said something wrong, I have the right to comment and criticize. I spoke about my feelings as a user of the car. It has nothing to do with damaging their reputation.””
- The AP report also described Tesla China’s legal victories as follows:
- “Over the last four years, Tesla has sued at least six car owners in China who had 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 the company, according to a review of public court documents and Chinese media reports by The Associated Press.
- “Tesla won all eleven cases for which AP could determine the verdicts. Two judgments are on appeal. One case was settled out of court.
- “Tesla has not only won the defamation cases it brought against unhappy car owners and critical journalists, it has also prevailed in lawsuits customers have filed against it.”
Context matters:
- While it is quite popular these days in several corners of the internet to frame Elon Musk and Tesla as evil entities that must be eliminated, it is important to look at the context behind Tesla China’s legal successes.
- Tesla China’s success in the country’s court system may not be due to a nefarious reasons at all. Instead, it could simply be due to one particular thing that the company is very good at—in-vehicle data.
- Take the case of Ms. Zhang, for example. When she alleged that her Model 3 experienced brake failure, Tesla China simply supplied the data from her vehicle to prove that the car’s brakes, in fact, did not malfunction.
- The same thing was true for social media influencers who allegedly showed Tesla’s vehicles experiencing brake failure.
- Back in 2021, during the height of the brake controversy in China, a Tesla owner decided to demonstrate how his Model X’s brakes were allegedly failing. The owner later admitted that the video was for entertainment purposes only.
- A famous blogger who alleged that Tesla’s automatic emergency braking system was subpar also posted a public apology to Tesla China after the company’s legal department pursued him.
- In that particular case, Tesla China was hardly throwing its weight around, since netizens in the country were already calling out the blogger for pressing on the vehicle’s accelerator during his automatic emergency braking test.
- Overall, Tesla China’s long string of legal victories seems to be due to the company’s willingness to hold critics accountable when needed, as well as the objective data that is provided by its vehicles.
The whipping boys of media:
- Elon Musk has a high tolerance for pain, and Tesla does too, at times to the detriment of the company’s shareholders.
- This has caused media outlets, social media influencers, and general netizens to casually throw out wild accusations against the CEO and the electric vehicle maker.
- This has been especially notable recently amidst Elon Musk’s work with DOGE.
- But while this is the status quo in the United States, Tesla China’s management team requires a more assertive legal strategy—one that would allow the company to thrive in the world’s most competitive and challenging electric vehicle market.
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
Tesla’s new Full Self-Driving pricing strategy will eliminate one recurring complaint that many owners have had in the past: FSD transfers.
In the past, if a Tesla owner purchased the Full Self-Driving suite outright, the company did not allow them to transfer the purchase to a new vehicle, essentially requiring them to buy it all over again, which could obviously get pretty pricey.
This was until Q3 2023, when Tesla allowed a one-time amnesty to transfer Full Self-Driving to a new vehicle, and then again last year.
Tesla is now allowing it to happen again ahead of the February 14th deadline.
The program has given people the opportunity to upgrade to new vehicles with newer Hardware and AI versions, especially those with Hardware 3 who wish to transfer to AI4, without feeling the drastic cost impact of having to buy the $8,000 suite outright on several occasions.
Now, that issue will never be presented again.
Last night, Tesla CEO Elon Musk announced on X that the Full Self-Driving suite would only be available in a subscription platform, which is the other purchase option it currently offers for FSD use, priced at just $99 per month.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Having it available in a subscription-only platform boasts several advantages, including the potential for a tiered system that would potentially offer less expensive options, a pay-per-mile platform, and even coupling the program with other benefits, like Supercharging and vehicle protection programs.
While none of that is confirmed and is purely speculative, the one thing that does appear to be a major advantage is that this will completely eliminate any questions about transferring the Full Self-Driving suite to a new vehicle. This has been a particular point of contention for owners, and it is now completely eliminated, as everyone, apart from those who have purchased the suite on their current vehicle.
Now, everyone will pay month-to-month, and it could make things much easier for those who want to try the suite, justifying it from a financial perspective.
The important thing to note is that Tesla would benefit from a higher take rate, as more drivers using it would result in more data, which would help the company reach its recently-revealed 10 billion-mile threshold to reach an Unsupervised level. It does not cost Tesla anything to run FSD, only to develop it. If it could slice the price significantly, more people would buy it, and more data would be made available.
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Tesla Model 3 and Model Y dominates U.S. EV market in 2025
The figures were detailed in Kelley Blue Book’s Q4 2025 U.S. Electric Vehicle Sales Report.
Tesla’s Model 3 and Model Y continued to overwhelmingly dominate the United States’ electric vehicle market in 2025. New sales data showed that Tesla’s two mass market cars maintained a commanding segment share, with the Model 3 posting year-to-date growth and the Model Y remaining resilient despite factory shutdowns tied to its refresh.
The figures were detailed in Kelley Blue Book’s Q4 2025 U.S. Electric Vehicle Sales Report.
Model 3 and Model Y are still dominant
According to the report, Tesla delivered an estimated 192,440 Model 3 sedans in the United States in 2025, representing a 1.3% year-to-date increase compared to 2024. The Model 3 alone accounted for 15.9% of all U.S. EV sales, making it one of the highest-volume electric vehicles in the country.
The Model Y was even more dominant. U.S. deliveries of the all-electric crossover reached 357,528 units in 2025, a 4.0% year-to-date decline from the prior year. It should be noted, however, that the drop came during a year that included production shutdowns at Tesla’s Fremont Factory and Gigafactory Texas as the company transitioned to the new Model Y. Even with those disruptions, the Model Y captured an overwhelming 39.5% share of the market, far surpassing any single competitor.
Combined, the Model 3 and Model Y represented more than half of all EVs sold in the United States during 2025, highlighting Tesla’s iron grip on the country’s mass-market EV segment.
Tesla’s challenges in 2025
Tesla’s sustained performance came amid a year of elevated public and political controversy surrounding Elon Musk, whose political activities in the first half of the year ended up fueling a narrative that the CEO’s actions are damaging the automaker’s consumer appeal. However, U.S. sales data suggest that demand for Tesla’s core vehicles has remained remarkably resilient.
Based on Kelley Blue Book’s Q4 2025 U.S. Electric Vehicle Sales Report, Tesla’s most expensive offerings such as the Tesla Cybertruck, Model S, and Model X, all saw steep declines in 2025. This suggests that mainstream EV buyers might have had a price issue with Tesla’s more expensive offerings, not an Elon Musk issue.
Ultimately, despite broader EV market softness, with total U.S. EV sales slipping about 2% year-to-date, Tesla still accounted for 58.9% of all EV deliveries in 2025, according to the report. This means that out of every ten EVs sold in the United States in 2025, more than half of them were Teslas.
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Tesla Model 3 and Model Y earn Euro NCAP Best in Class safety awards
“The company’s best-selling Model Y proved the gold standard for small SUVs,” Euro NCAP noted.
Tesla won dual categories in the Euro NCAP Best in Class awards, with the Model 3 being named the safest Large Family Car and the Model Y being recognized as the safest Small SUV.
The feat was highlighted by Tesla Europe & Middle East in a post on its official account on social media platform X.
Model 3 and Model Y lead their respective segments
As per a press release from the Euro NCAP, the organization’s Best in Class designation is based on a weighted assessment of four key areas: Adult Occupant, Child Occupant, Vulnerable Road User, and Safety Assist. Only vehicles that achieved a 5-star Euro NCAP rating and were evaluated with standard safety equipment are eligible for the award.
Euro NCAP noted that the updated Tesla Model 3 performed particularly well in Child Occupant protection, while its Safety Assist score reflected Tesla’s ongoing improvements to driver-assistance systems. The Model Y similarly stood out in Child Occupant protection and Safety Assist, reinforcing Tesla’s dual-category win.
“The company’s best-selling Model Y proved the gold standard for small SUVs,” Euro NCAP noted.
Euro NCAP leadership shares insights
Euro NCAP Secretary General Dr. Michiel van Ratingen said the organization’s Best in Class awards are designed to help consumers identify the safest vehicles over the past year.
Van Ratingen noted that 2025 was Euro NCAP’s busiest year to date, with more vehicles tested than ever before, amid a growing variety of electric cars and increasingly sophisticated safety systems. While the Mercedes-Benz CLA ultimately earned the title of Best Performer of 2025, he emphasized that Tesla finished only fractionally behind in the overall rankings.
“It was a close-run competition,” van Ratingen said. “Tesla was only fractionally behind, and new entrants like firefly and Leapmotor show how global competition continues to grow, which can only be a good thing for consumers who value safety as much as style, practicality, driving performance, and running costs from their next car.”
Tesla Full Self-Driving pricing strategy eliminates one recurring complaint
Tesla Model 3 and Model Y dominates U.S. EV market in 2025
