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(Op-Ed) Tesla China has been very successful legally–but is something nefarious really afoot?

Credit: Tesla Asia/X

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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.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk

Elon Musk just said some crazy stuff about the Tesla Roadster

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Credit: Teslarati via Riccardo Cestarelli

Elon Musk appeared on the Moonshots podcast with Peter Diamandis today to discuss AGI, U.S. vs. China, Tesla, and some other interesting topics, but there was some discussion about the upcoming unveiling of the Roadster, the company’s electric supercar that will arrive several years after it was initially slated for release.

Musk made some pretty amazing claims about the Roadster; we already know it is supposed to be lightning-fast and could even hover, if Tesla gets everything to happen the way it wants to. However, the car has some pretty crazy capabilities, some of which have not even been revealed.

On the podcast, Musk said:

“This is not a…safety is not the main goal. If you buy a Ferrari, safety is not the number one goal. I say, if safety is your number one goal, do not buy the Roadster…We’ll aspire not to kill anyone in this car. It’ll be the best of the last of the human-driven cars. The best of the last.”

Musk makes a good point: people who buy expensive sports cars with ridiculous top speeds and acceleration rates do not buy them to be safe. They hope they are safe in case of an emergency or crash, but safety is not at the forefront of their thoughts, because nobody buys a car thinking they’ll crash it.

The Roadster is truly going to push the limits and capabilities of passenger vehicles; there’s no doubt about that. Tesla plans to show off the new version car for the first time on April 1, and Musk has only hinted at what is possible with it.

Musk said back in November:

“Whether it’s good or bad, it will be unforgettable. 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, he should be able to buy one…I think it has a shot at being the most memorable product unveiling ever. [It will be unveiled] hopefully before the end of the year. You know, we need to make sure that it works. This is some crazy technology in this car. Let’s just put it this way: if you took all the James Bond cars and combined them, it’s crazier than that.”

Production is set to begin between 12 and 18 months after the unveiling, which would put the car out sometime in 2027. Hopefully, Tesla is able to stay on track with the scheduling of the Roadster; many people have been waiting a long time for it.

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Tesla launches hiring for Robotaxi program in its twentieth country

Overall, the hiring signals Tesla’s aggressive timeline for global dominance in autonomous mobility.

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Credit: @AdanGuajardo/X

Tesla has launched a hiring initiative for its Robotaxi program in its twentieth country, as the company posted two new jobs in Thailand this week.

Tesla is hiring in Bangkok and Kowloon for the Vehicle Operator position, which is related to data collection, and is the first in Thailand, but the twentieth country overall, as the company tries to expand into other markets.

Tesla has had active job postings for Vehicle Operator positions in the United States, India, Israel, Taiwan, Germany, the Czech Republic, Hungary, the UK, Finland, Switzerland, Sweden, the Netherlands, Austria, Spain, Norway, Italy, and Turkey in past listings.

These postings are not all currently available, likely because the roles have been filled.

Thailand is the most recent, and broadens the company’s potential path to expanding its ride-hailing program, which is only active in the United States in Austin, Texas, and the California Bay Area, so far.

These roles typically involve data collection, which assists in improving Autopilot and Full Self-Driving operation. Tesla’s self-driving programs utilize real-world data that is accumulated and stored, observing vehicle and traffic behavior, as well as tendencies that are performed by human drivers to help increase safety and overall performance.

Overall, the hiring signals Tesla’s aggressive timeline for global dominance in autonomous mobility. Although the company has several high-profile rivals and competitors in the field, it has established itself as a main player and a leader in the development of autonomous technology, especially in the U.S., as its FSD suite is refined on almost a weekly basis.

The Full Self-Driving suite is available in seven countries and territories currently, including the U.S., Canada, China, Mexico, Puerto Rico, Australia, and New Zealand. Its biggest goal for expansion is currently the European market, where regulatory hurdles have been the main bottleneck prolonging its launch on the continent.

Tesla has performed months of testing in various European countries, including France and Spain, and does have support in some areas from various regulatory agencies. However, the company is hoping to get through this red tape and offer its suite in Europe for the first time, hopefully this year.

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Tesla China rolls out Model Y upgrades, launches low-interest financing

These strategies are aimed at improving the ownership experience and keeping vehicle pricing competitive in the world’s largest electric vehicle market.

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Credit: Grok Imagine

Tesla has rolled out minor updates to the five-seat Model Y in China, upgrading the vehicle’s center display to a higher-resolution 16-inch 2K screen. The electric vehicle maker also introduced attractive financing options, including 7-year low-interest rates, to offset the new purchase tax on EVs. 

These strategies are aimed at improving the ownership experience and keeping vehicle pricing competitive in the world’s largest electric vehicle market.

Five-seat Model Y gets larger, better display

With its recent update, all three variants of the five-seat Model Y now feature an upgraded 16-inch 2K resolution center display, which replaces the vehicle’s previous 15.4-inch 1080p panel. This screen was already used in the six-seat Model Y L, and it offered improved visual clarity. Tesla China has also updated the Model Y’s headliner to black, giving the vehicle a sleeker appearance.

Prices of the five-seat Model Y remain unchanged at RMB 263,500, RMB 288,500, and RMB 313,500 for the respective trims. This update enhances the cabin experience as domestic rivals are already adopting high-resolution screens. As noted in a CNEV Post report, some domestic automakers have begun rolling out vehicles equipped with 3K-resolution displays. 

New financing offers

Tesla also launched ultra-long-term financing offers for its locally produced models in China, which include the Model 3 sedan, the five-seat Model Y, and the six-seat Model Y L, through January 31, 2026. The 7-year option features an annualized fee rate as low as 0.5%, which is equivalent to 0.98% interest. This is expected to save customers up to RMB 33,479 ($4,790) compared to standard rates.

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A 5-year zero-interest plan is also available, and it has been extended to the Tesla Model Y L for the first time. These incentives help offset China’s new 5% purchase tax on New Energy Vehicles (NEVs) in 2026-2027. Some of Tesla’s rivals in China have announced in recent months that they would be covering the purchase tax owed by buyers early this year. 

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