News
Tesla China owner ordered to pay damages after describing Model X as “suicide toy”
Tesla China’s legal team has secured another win, with the electric vehicle maker recently winning a defamation case filed against a Model X owner who previously described his vehicle as a “killing” or “suicide toy” in statements to the media. The court’s judgment required the defendant to post a public apology in a local newspaper and pay a fine of RMB 10,000 ($1,412) due to his actions.
The Model X owner, dubbed in reports as Mr. Wen, was reportedly driving his Model X from Fuyang to Zhengzhou when the vehicle suddenly decreased its speed from 100 km/h to 60 km/h. In later interviews with the media, Mr. Wen stated that the Model X’s brakes failed, which turned the all-electric vehicle into a “suicide toy.”
Apart from this, the Model X owner claimed that no one from Tesla China contacted him about the incident despite the malfunction. This statement was proven false as per the court ruling, since evidence showed that a Tesla China staff member contacted Mr. Wen on the day of the incident to get details on the situation.
The Tesla China staff member reportedly tried to get the vehicle inspected, but despite several tries from the electric vehicle maker, the Model X owner reportedly refused, according to the court order. As noted in the verdict, Mr. Wen later made statements in interviews that were inconsistent with the facts of the case. These statements ended up having a negative impact on Tesla’s business image in China.
Following is a screenshot of the court’s decision on the case.
And following is a rough translation of the text.
People’s Court of Guancheng Hui District, Zhengzhou City, Henan Province
Civil Judgment
(2022) Henan 0104 Minchu No. 8276
Plaintiff: Tesla Motors (Beijing) Co., Ltd., domiciled in Chaozhou, Beijing
Room 01, Room 801, 8th Floor, No. 77 Jianguo Road, Yang District.
Legal representative: [redacted]
Agent ad litem: [redacted]
Defendant: Wen
Court judgment:
1. It is determined that Mr. Wen’s remarks constitute infringement
2. Mr. Wen apologizes to Tesla
3. Mr. Wen compensates Tesla for losses
This court holds that civil subjects enjoy the right of reputation. No organization or individual may infringe upon the reputation rights of others by insulting or slandering. The right of reputation of a legal person refers to the right of a legal person not to be infringed by others for the social evaluation generated by all its activities. The plaintiff, as an enterprise legal person, enjoys the right of reputation according to law, and no one is allowed to fabricate or spread false information that damages the reputation and external image of its products. In this case, the defendant stated in an interview that no one contacted him after the vehicle involved in the case broke down, and claimed that the plaintiff company was “a dead pig is not afraid of boiling water”, which is inconsistent with the facts.
The evidence submitted by the plaintiff shows that on the day when the breakdown of the vehicle involved in the case occurred, a staff member contacted the defendant to understand the situation and made a request to inspect the vehicle involved in the case. He also communicated with the defendant many times about maintenance matters, but the defendant refused. However, in the interview, the defendant made a statement that was inconsistent with the facts, telling the plaintiff that consumers should send the vehicle for inspection and maintenance in time, and legally protect the rights of the problems with the vehicle.
However, the defendant refused to overhaul it, and made a statement under the condition that he believed that there was no major problem with the vehicle, “I bought a Tesla for 1.5 million, and I bought a killing toy or a suicide toy. It is worth it” and “I am not buying an electronic bomb, I am buying safety, what I want is safety and other statements containing derogatory language. The above-mentioned remarks of the defendant have been released and reproduced by the media platform, which has caused public criticism of the plaintiff, and the negative evaluation of the “Tesla” brand caused the plaintiff’s social evaluation to be lowered and the plaintiff’s right of reputation was violated.
To sum up, in accordance with Articles 110 and 1024 of the Civil Code of the People’s Republic of China and Paragraph 1 of Article 67 of the Civil Procedure Law of the People’s Republic of China, the Supreme People’s Court Article 12, Paragraph 2 of the Provisions on Several Issues concerning the Application of Law in Civil Dispute Cases of Infringement of Personal Rights and Interests Using Information Networks stipulates that the judgment is as follows:
- The defendant Wen apologized to the plaintiff Tesla Motors (Beijing) Co., Ltd. within ten days after this judgment came into effect, and the content of the apology was reviewed and approved by the court. It was later published in “Henan Legal News”;
- The defendant Wen shall compensate the plaintiff Tesla Motors (Beijing) Co., Ltd. 10,000 yuan within ten days after this judgment takes effect.
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Tesla CEO Elon Musk posted a photo of himself standing with the Optimus production team inside Tesla’s Fremont factory, arms crossed amid workers in hard hats and safety vests. The image captures a pivotal industrial shift: the same facility space once dedicated to building Tesla’s flagship Model S sedan and Model X SUV is now home to the company’s humanoid robot manufacturing line.
Walking the Optimus production line in Fremont pic.twitter.com/ABS0tuRibW
— Elon Musk (@elonmusk) July 1, 2026
Tesla’s Fremont Factory, acquired in 2010 from the former NUMMI joint venture between Toyota and GM, has been the company’s original U.S. manufacturing hub since Model S production began in 2012.
The Model X followed soon thereafter. These premium vehicles offered lower annual volumes, recently around 30,000 combined, compared to the high-volume Model 3 and Model Y lines that continue around the site. Over their combined run, the S and X accounted for roughly 610,000 units.
In late January 2026, during Tesla’s Q4 2025 earnings call, Elon Musk announced the end of Model S and Model X production in Q2 2026. The final vehicles rolled off the line in early May. Rather than retooling for another vehicle, Tesla chose to convert the dedicated S/X assembly area into a dedicated Optimus Gen 3 production line.
Model 3 and Y manufacturing remains unaffected. Tesla’s official Fremont Factory page now lists Optimus alongside the 3 and Y as core products.
The conversion was executed with remarkable speed. After production stopped, crews dismantled the existing vehicle line and installed entirely new modular equipment—including lines sourced from Germany and dozens of sub-lines for actuators, batteries, and other components—in roughly four months.
Musk described the timeline as “insanely fast,” noting it would be unprecedented for any other manufacturer. Initial Optimus output is expected to ramp slowly due to the robot’s roughly 10,000 unique parts and the brand-new production processes involved. The Fremont line targets an eventual capacity of 1 million Optimus units per year.
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
Optimus Development Timeline
- August 19, 2021: Optimus (then called Tesla Bot) formally announced at Tesla’s first AI Day. A concept video showed a person in a suit demonstrating the vision for a general-purpose humanoid capable of dangerous, repetitive, or boring tasks using the same AI architecture as Full Self-Driving.
- 2022: Early prototypes displayed. At the second AI Day in September, semi-functional units demonstrated walking across a stage and basic arm movements
- 2023: September videos showed improved capabilities, including sorting colored blocks, precise limb awareness, and holding a Yoda pose.
- 2024-early 2025: Factory integration videos showed Optimus navigating workspaces and handling objects like battery cells.
- January 2026: Gen 3 mass-production activities began at Fremont, with reports of over 1,000 Gen 3 units already operating inside the factory for real-world learning and AI training
- April 2026: Musk confirms Optimus production on converted Fremont line would begin in late July or August 2026. The Gen 3 reveal, originally eyed for Q1, was pushed closer to production start. A second, much larger Optimus factory at Giga Texas is under construction, with volume production targeted for Summer 2027 and long-term capacity of 10 million units annually
- July 1, 2026: Musk’s on-site visit and team photo confirm the Optimus line is operational and the transition is actively progressing
Tesla positions Optimus as potentially its largest project ever, leveraging vertical integration, AI expertise, and car-like manufacturing know-how to scale humanoid robots first for its own factories and later for broader industrial and consumer use.
The Fremont conversion serves as a critical proving ground for this ambitious new chapter in Tesla’s already-rich history.
Investor's Corner
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
Tesla short seller Michael Burry, the subject of the film “The Big Short,” where he was portrayed by Steve Carell, has revealed he has opened a new bet against the stock.
In a new update to his Substack newsletter in a post titled “Trading Post June 30, 2026,” Burry revealed a new set of bets against Tesla, Caterpillar, NVIDIA, Applied Materials Inc., and the iShares Semiconductor ETF.
In regard to Tesla, Burry wrote:
“And finally I shorted Tesla at 416.22. Happy it jumped back to this level.”
This means Burry likely opened his new short position after the company’s recent rally on Wall Street, which saw Tesla shares sink in mid-May, only to recover to well over the $400 mark. Currently, shares trade at around $427.
The company saw a big Tuesday as shares climbed considerably, over 10 percent. The size of the Tesla short was not provided, nor did Burry give any information on the position’s structure, the number of shares, dollar value, or whether options were used in the short.
The Tesla and SpaceX merger everyone is talking about is quietly building
Over the years, Burry has been one of the more vocal critics of Tesla, calling its share price “media inflated,” and saying it was “ridiculously overvalued” as recently as December.
The company has largely transitioned away from being known as an automotive company and instead is much more widely regarded as an AI play, mostly due to its Full Self-Driving efforts, Optimus robot development, and data collection related to both.
This has not pulled those skeptics away from being vocal about their distaste for how Tesla is valued, but there’s no denying that the company is a global force in many things, including sustainable energy, automotive, and AI.
Wedbush Securities is initiating stock coverage on SpaceX (NASDAQ: SPCX), marking the first comments on the company since it went public several weeks ago. Wedbush and its analyst handling coverage, Dan Ives, are widely bullish on fellow Musk company Tesla (NASDAQ: TSLA).
Ives wrote his first note initiating coverage of SpaceX shares on Wednesday with a $190 price target and an ‘Outperform’ rating. The firm believes the company is well positioned off of its IPO because of its wide array of projects, including AI compute power and infrastructure, connectivity projects, and launches.
“We view SpaceX as one of the most differentiated assets within the tech market with a strong footprint across its three core markets, with Starlink driving success with connectivity,” Ives wrote, “Starship launches leading to a demand flywheel and increasing deal flow for its Colossus clusters.”
Elon Musk called it Epic: The full story of SpaceX’s Starship Flight 12
Wedbush leans heavily on Starlink, which they say is the “profitability driver given the strength of its recurring revenue base of ~12 million subscribers as of June 5th.” Ives believes Starlink is still in the “early innings” of penetrating the global telecommunications and broadband market, as it only holds less than a 1 percent share. However, this number is sure to increase over time.
It also highlights the importance of Starship, which it says is an “essential layer” of SpaceX’s overall success. SpaceX developing and displaying the ability to reuse rockets is a major cost and reliability advantage “as it reduces the necessary hardware launch costs while generating a feedback loop for future flights to improve their launch flight rate without accelerating capex spend.”
Finally, SpaceX’s recent AI/Compute projects are also very elementary, Ives writes. It is worth mentioning Wedbush said its $190 price target is derived from a valuation forecast that sees the company yielding roughly $2.48 trillion of implied enterprise value.
There are also some factors that Wedbush did not take into account with its initial coverage. The firm wrote in the note:
“We note that there is optional value coming from Starship’s accelerating scale towards sub-$200/kg unit economics, orbital data centers, and enterprise AI monetization as these factors could drive meaningful upside but these face major hurdles, so we do not take that into account with our valuation.”
SpaceX shares are down just over 2 percent today, trading at around $167 at the time of publication.
Tesla Optimus project fires up as Musk sees production line progress
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
