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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 Supercharger Diner in Los Angeles dominated the company’s global usage rankings after just one year, proving the concept is more than just a one-off novelty location that will fade away.
The performance could incite the company to build more locations, something that CEO Elon Musk has hinted at for some time.
Tesla’s Supercharger Diner delivered 21.2 GWh of energy in its first year of operation, the company’s head of Charging, Max de Zegher, revealed on X. Of the top 10 most utilized Supercharger locations in Tesla’s global infrastructure, the Diner in Los Angeles was the most used by drivers, and it wasn’t particularly close:
Tesla Diner opened exactly 1 year ago. Inspiring that futuristic places like this exist.
It’s our highest usage Supercharger in the world: 21.2 GWh delivered in a year, 1.6k sessions/day.
Top 10 Superchargers by energy delivered: https://t.co/9YvJ8lw696 pic.twitter.com/koB3AUJHws
— Max (@MdeZegher) July 21, 2026
On its launch day one year ago, nobody was too sure what the Tesla Diner would be about. It seemed like an interesting concept, and considering it had been in the works for years, it was a highly anticipated launch that many were looking forward to.
Based on its success, we could see additional Diners with Superchargers built throughout the United States, and potentially beyond. Musk has said on several occasions that the company would be willing to bring the Diner idea to more markets.
Tesla makes major change at Supercharger Diner amid epic demand
Of the markets that Musk has mentioned, both Palo Alto and Austin have come to be perceived as ideal selections. However, there are no concrete plans as of now to build new Supercharger Diners anywhere; the location on Santa Monica Boulevard will remain the exclusive spot to pick up Tesla-inspired eats, at least for the time being.
Tesla short sellers won big following the company’s massive fall on Wall Street after it reported subpar Earnings on Wednesday.
Tesla short sellers collected about $4.12 billion in single-day profits on Thursday, according to Bloomberg. Shares fell as much as 15 percent during Thursday’s session. It closed as one of the worst days for Tesla on Wall Street in the past three years.
Investors sold off the stock after Tesla said it would aggressively direct its spending toward AI and its Optimus robot project. The company had record revenues, which were driven by one of the strongest quarters in terms of vehicle deliveries in company history.
However, it missed EPS estimates by reporting just $0.33, a far cry from the $0.53 analysts expected.
S3 Partners reported that about 3 percent of Tesla’s outstanding stock is sold short. Managing Director at S3, Ihor Dusaniwsky, provided the short seller’s potential profit, as well as another figure: shorts have likely had paper gains of $8.92 billion this year, as Tesla shares are down 30 percent in 2026.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla has burned short sellers many times in the past, but the company’s latest Earnings Call was a chance for those skeptics to taste some payback. Although the company gave some very transparent information regarding future projects, the rollout of Robotaxi, Optimus, and Semi, many investors took their profits on Thursday.
Notable short sellers like Michael Burry have been transparent about their skepticism around Tesla shares. Burry just revealed three weeks ago that he had opened up a new short on the stock, stating he shorted Tesla shares at $416.22. “Happy it jumped back to this level,” he said in a blog post.
At the time of publication, Tesla shares were down about 3 percent and the stock was trading at $309.92.
Tesla’s long-standing saga regarding its door handles and a manual release has entered its latest chapter, and as a result, a big change is coming.
On Friday, the National Highway Traffic Safety Administration (NHTSA) denied Tesla’s petition that was seeking a defect investigation into roughly 180,000 Model 3 vehicles for an issue involving the emergency mechanical door release.
🚨 The NHTSA denied a petition from Tesla that would have thrown out concerns regarding its door handles.
NHTSA said Tesla’s petition did not present evidence of a safety-related defect warranting an investigation. The agency said a rulemaking process would be a better strategy. pic.twitter.com/j6PzUBM1mT
— TESLARATI (@Teslarati) July 24, 2026
NHTSA said that Tesla’s petition did not present evidence of a safety-related defect in the door handles or their emergency releases. Instead, the agency determined that it would rather solve the issue of the lack of labeling or location of emergency mechanical door releases and the federal safety rules that govern them.
Essentially, the NHTSA wants to create and enforce rules that would require automakers to make emergency door latch releases more clearly labeled in a car. Despite a Tesla having manual door releases on all four passenger doors, many people do not know they exist or how they work.
Tesla addresses door handle complaints with simple engineering fix
In recent times, Tesla has faced some criticism involving its door handles, specifically because some occupants have reported that they are unable to exit their vehicles after losing power. The door handles on a Tesla are electronically operated, but in the event that the 12V battery dies, there is a manual release that can be used.
The NHTSA only identified a single complaint involving the mechanical door releases: a 2022 Model 3 owner said the release was concealed and unlabeled after the vehicle lost power after a front-end collision. It has also already started to create a separate rulemaking process to make emergency door-egress systems more obvious.
It should be noted that all Teslas have mechanical emergency door releases, but they are placed in various locations as the vehicles have aged and been redesigned from year to year. Refer to the safety manual for your vehicle if you have any confusion about where the emergency releases are and how they work.
Tesla’s Supercharger Diner probably just secured more locations
Tesla short sellers win big after shares fall after earnings
