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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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Tesla dominates JD Power EV Satisfaction ranking, grabbing top two spots

The Model 3 was the highest ranking EV considered, with a score of 804, followed by the Model Y at 797, the BMW i4 at 795, and the BMW iX at 794.

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Credit: Tesla Europe & Middle East/X

Tesla dominated JD Power’s EV Owner Satisfaction ranking for 2026, grabbing the top two spots in the survey with the Model 3 and Model Y.

The two Tesla models grabbed the first and second spots, respectively, with scores of 804 and 797 out of 1,000 possible points.

Brent Gruber, Executive Director of JD Power’s EV practice, said:

“EV market share has declined sharply following the discontinuation of the federal tax credit program in September 2025, but that dip belies steadily growing customer satisfaction among owners of new EVs. Improvements in battery technology, charging infrastructure, and overall vehicle performance have driven customer satisfaction to its highest level ever. What’s more, the vast majority of current EV owners say they will consider purchasing another EV for their next vehicle, regardless of whether they benefited from the now-expired federal tax credit.”

JD Power’s study showed three key findings: Public charging satisfaction was higher than ever, premium BEVs saw more pronounced quality improvements, and BEVs held their satisfaction ratings compared to plug-in hybrid electric vehicles (PHEVs).

Tesla Grabs Top 2 Spots

Despite what some publications might try to make you believe, Tesla is still the cream of the crop when it comes to EV ownership, and real-world owners surveyed by JD Power will prove that to you.

The Model 3 was the highest ranking EV considered, with a score of 804, followed by the Model Y at 797, the BMW i4 at 795, and the BMW iX at 794. The segment average for “Premium Battery Electric Vehicles” was 786. The Cadillac OPTIQ (762), Rivian R1S (758), Lucid Air (740), Rivian R1T (739), and Audi Q6 e-Tron (690) all finished below that threshold.

Tesla Model 3 wins Edmunds’ Best EV of 2026 award

Meanwhile, a separate category for “Mass Market Battery Electric Vehicles” had the Ford Mustang Mach-E as the EV with the highest rating at 760. The segment average for this class was 727.

Tesla Supercharging Improves Public Charging Satisfaction

JD Power said the availability of public charging is “by far the most improved index factor,” and that the consistent growth of publicly available charging has helped push many consumer sentiments in a positive direction.

Most of this is due to the Tesla Supercharger Network and its expansion. However, Tesla owners are also becoming more satisfied with the infrastructure after expanding access to other EV brands, the study said.

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Musk company boycott proposal at City Council meeting gets weird and ironic

The City of Davis in California held a weekly city council meeting on Tuesday, where it voted on a proposal to ban Musk-operated companies. It got weird and ironic.

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Credit: Grok

A city council meeting in California that proposed banning the entry of new contracts with companies controlled by Elon Musk got weird and ironic on Tuesday night after councilmembers were forced to admit some of the entities would benefit the community.

The City of Davis in California held a weekly city council meeting on Tuesday, where it voted on a proposal called “Resolution Ending Engagement With Elon Musk-Controlled Companies and To Encourage CalPERS To Divest Stock In These Companies.”

The proposal claimed that Musk ” has used his influence and corporate platforms to promote political ideologies and activities that threaten democratic norms and institutions, including campaign finance activities that raise ethical and legal concerns.”

We reported on it on Tuesday before the meeting:

California city weighs banning Elon Musk companies like Tesla and SpaceX

However, the meeting is now published online, and it truly got strange.

While it was supported by various members of the community, you could truly tell who was completely misinformed about the influence of Musk’s companies, their current status from an economic and competitive standpoint, and how much some of Musk’s companies’ projects benefit the community.

City Council Member Admits Starlink is Helpful

One City Council member was forced to admit that Starlink, the satellite internet project established by Musk’s SpaceX, was beneficial to the community because the emergency response system utilized it for EMS, Fire, and Police communications in the event of a power outage.

After public comments were heard, councilmembers amended some of the language in the proposal to not include Starlink because of its benefits to public safety.

One community member even said, “There should be exceptions to the rule.”

Community Members Report Out of Touch Mainstream Media Narratives

Many community members very obviously read big bold headlines about how horribly Tesla is performing in terms of electric vehicles. Many pointed to “labor intimidation” tactics being used at the company’s Fremont Factory, racial discrimination lawsuits, and Musk’s political involvement as clear-cut reasons why Davis should not consider his companies for future contracts.

However, it was interesting to hear some of them speak, very obviously out of touch with reality.

Musk has encouraged unions to propose organizing at the Fremont Factory, stating that many employees would not be on board because they are already treated very well. In 2022, he invited Union leaders to come to Fremont “at their convenience.”

The UAW never took the opportunity.

Some have argued that Tesla prevented pro-union clothing at Fremont, which it did for safety reasons. An appeals court sided with Tesla, stating that the company had a right to enforce work uniforms to ensure employee safety.

Another community member said that Tesla was losing market share in the U.S. due to growing competition from legacy automakers.

“Plus, these existing auto companies have learned a lot from what Tesla has done,” she said. Interestingly, Ford, General Motors, and Stellantis have all pulled back from their EV ambitions significantly. All three took billions in financial hits.

One Resident Crosses a Line

One resident’s time at the podium included this:

He was admonished by City Council member Bapu Vaitla, who said his actions were offensive. The two sparred verbally for a few seconds before their argument ended.

City Council Vote Result

Ultimately, the City of Davis chose to pass the motion, but they also amended it to exclude Starlink because of its emergency system benefits.

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Elon Musk’s xAI Secures $3B Investment From Saudi AI Firm HUMAIN

The transaction converts HUMAIN’s xAI stake into SpaceX shares, positioning the Saudi-backed firm as a significant minority shareholder in the newly combined entity.

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Credit: xAI

Saudi artificial intelligence firm HUMAIN has confirmed a $3 billion Series E investment in xAI just weeks before the startup’s merger with SpaceX.

The transaction converts HUMAIN’s xAI stake into SpaceX shares, positioning the Saudi-backed firm as a significant minority shareholder in the newly combined entity.

The investment gives HUMAIN exposure to what has been described as one of the largest technology mergers on record, combining xAI’s artificial intelligence capabilities with SpaceX’s scale, infrastructure, and engineering base, as noted in a press release.

“This investment reflects HUMAIN’s conviction in transformational AI and our ability to deploy meaningful capital behind exceptional opportunities where long-term vision, technical excellence, and execution converge, xAI’s trajectory, further strengthened by its acquisition by SpaceX, one of the largest technology mergers on record, represents the kind of high-impact platform we seek to support with significant capital” HUMAIN CEO Tareq Amin stated.

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The investment also positions HUMAIN for potential long-term equity upside should SpaceX proceed with a public offering.

The investment expands on an existing partnership announced in November 2025 at the U.S.-Saudi Investment Forum. Under that agreement, HUMAIN and xAI committed to jointly develop more than 500 megawatts of next-generation AI data center and compute infrastructure in Saudi Arabia.

The collaboration also includes deployment of xAI’s Grok models within the kingdom, aligning with Saudi Arabia’s broader strategy to build domestic AI capacity and attract global technology players.

HUMAIN, backed by the Public Investment Fund, is positioning itself as a full-stack AI player spanning advanced data centers, cloud infrastructure, AI models, and applied solutions. The Series E investment deepens its role from development partner to major shareholder in the Musk-led AI and space platform.

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