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Tesla says ‘brake failure’ protestor vandalized Model 3, refused third-party testing
Tesla is navigating through a difficult bout with an owner in Shanghai, China, named Zhang Yazhou, who appeared at the Shanghai Auto Show last week in protest of what she claimed was a faulty Model 3 braking system. Tesla has now issued a more lengthy and detailed description of their encounters with Mrs. Zhang, revealing that she not only vandalized her own car with red spray paint, but she also denied any requests made by Tesla to have an independent, third-party company investigate whether the Model 3 had braking issues.
On April 19th, Zhang climbed on top of a Model 3 that was positioned at the Tesla booth at the Shanghai Auto Show. Wearing a shirt that said “Tesla Brake Failure,” Zhang yelled “Tesla brakes failed me” to a crowd of spectators who surrounded the all-electric sedan. As a result, Tesla has released several responses, including data from the accident that showed the driver, who was actually Zhang’s father, was driving at a speed that was above the posted speed limit and engaged the braking system successfully on more than 40 occasions in the half-hour leading up to the accident.
Now, Tesla is making more attempts to reveal the story to the public and is revealing its interactions with Zhang.
The Tesla Model Y is leading China’s electric SUV segment by a wide margin
On Tesla’s official Weibo page, the company stated that Zhang talked to Tesla on April 27th, and the automaker was willing to continue communicating and try to come to a solution. After a five-day stint with the Police following the protest, Zhang returned home and told Tesla reps, “I just came back. I need to adjust. I hope you can show an attitude that really solves the problem. When you have this attitude, we will communicate.”
Tesla revealed that Zhang was in the passenger’s seat during the accident and that traffic police came to the conclusion that the driver, Zhang’s father, was “fully responsible for the accident because he did not maintain a safe distance from the vehicle in front.” After the vehicle arrived at a local service shop for repairs on February 22, Tesla says Ms. Zhang put a seal on the vehicle three days after its arrival so nobody could enter the car. Tesla says that Zhang believed the vehicle’s data could be tampered with, and this was the reason for the seal being placed on the doors. Zhang had the still-wrecked vehicle towed to Tesla’s Zhengzhou Fotamen showroom on March 5th, where it would be sitting in the public for everyone to see.
Zhang’s door seals (Credit: Tesla | Weibo)
The following day, Zhang placed a banner that read “Brake Failure” on the car, and Tesla began offering Zhang the option of having third-party inspectors take a look at the car on their dime. Zhang refused, saying that she was not interested in having the car looked at by “non-accredited third-party testing agencies,” and warned that Tesla should “look for pressure from the media” if the car wasn’t returned.
Zhang placed a banner on the car that said “Brake Failure” as the Model 3 sat in front of its Zhengzhou Fotamen showroom. (Credit: Tesla | Weibo)
Zhang then came back to the showroom where her car was located and spraypainted the exterior of her wrecked Model 3 with red paint. The words once again said, “Brake Failure.”
“The Tesla staff are still actively communicating with Ms. Zhang, trying to find a solution, and negotiating with her husband, Mr. Li, hoping to minimize the impact and help her maximize the benefits within a reasonable range. Mr. Li made it clear that he still has a “team” from Beijing assisting him, and being helped by others in “cooperating” with others can only be obedient,” Tesla added. Zhang resealed her vehicle on March 21st.
Zhang spraypainted her wrecked Model 3 with red paint, with the words “Brake Failure” present on the driver’s side of the car. (Credit: Tesla | Weibo)
According to Tesla, Zhang then had the car towed to the Zhengzhou Dahe Auto Show, where two hired models stood beside the car. Zhang then made her appearance at the Shanghai Auto Show on April 19th. Tesla says that it is still working to iron out the situation and work with Zhang and her husband, who is identified as Mr. Li. Tesla sent a sealed version of the vehicle data that was available 30 minutes before the accident occurred to Zhang’s house.
“Since February, we have been doing our best to actively communicate with Ms. Zhang and her family. We sincerely hope that we can promote vehicle inspection as soon as possible and give a result to the friends who care about Tesla,” the company concluded.
You can read Tesla’s full response here.
In the world of autonomous ride-hailing, there are only a handful of names. Among those few companies lies a strategy play by each to keep the opposition on their toes. Tesla, on the other hand, already tipped its hand at where it is headed next.
Tesla has signaled its next major push in the autonomous ride-hailing market by filing for an Autonomous Vehicle Network Company permit in Nevada (Docket 26-05015). Through Tesla Robotaxi, LLC, the company seeks approval to operate up to 5,000 robotaxis in Clark County, including high-traffic areas like Las Vegas and Henderson airports, within the first 12 months of launch.
This filing builds on Tesla’s earlier testing approvals from the Nevada DMV in September 2025 and preparations such as maintenance hubs in the Las Vegas area. Nevada represents a strategic expansion into a major tourist destination, where high visitor volumes could drive strong utilization and showcase the reliability of unsupervised autonomy to a broad audience.
We’d have to assume this means Tesla is targeting Las Vegas, and it’s a great move from a business perspective.
Vegas is such a melting pot of people from all around the country and the world. It will expose people from all corners of the globe to Tesla’s autonomy capabilities https://t.co/Qz3fQmhULF pic.twitter.com/Du5pj2RyWC
— TESLARATI (@Teslarati) June 6, 2026
Approval would mark a significant step toward commercial operations in a new state, following progress in Texas.
Tesla’s shareholder decks and earnings calls have clearly outlined these ambitions. In the Q4 2025 shareholder deck, the company listed planned Robotaxi coverage for the first half of 2026, explicitly naming Las Vegas alongside Phoenix, Miami, Orlando, and Tampa, with Dallas and Houston already advancing. Austin was noted as “ramping unsupervised,” while the Bay Area remained in safety-driver mode.
By Q1 2026, the deck updated statuses to reflect launches in Dallas and Houston, with “preparations underway” for the remaining cities, including Las Vegas. Paid Robotaxi miles nearly doubled sequentially in Q1, underscoring momentum even as broader timelines adjusted slightly for regulatory and operational readiness.
On earnings calls, CEO Elon Musk and executives have emphasized a phased rollout prioritizing safety. Unsupervised operations in Texas have shown strong results with no reported accidents or injuries in the program. Tesla continues groundwork in additional major U.S. metros through testing and permitting, positioning it to scale quickly once approvals clear.
This Nevada move aligns with Tesla’s vision of transforming from an EV maker into an AI and robotics leader. The forthcoming Cybercab, which started production at Giga Texas in April, is expected to eventually dominate the fleet, replacing many Model Y vehicles and driving down costs to enable affordable rides.
For investors and the industry, this signals Tesla’s intent to dominate key Sun Belt and tourist markets where weather, regulations, and demand favor rapid scaling. Success in Las Vegas could validate the model for denser urban and high-tourism environments, accelerating the shift toward a future where robotaxis generate meaningful revenue.
Las Vegas will also expand knowledge among the general public at Tesla’s capabilities, helping people experience driverless ride-hailing from several companies during their time on The Strip.
The Tesla Model 3’s cheapest trim level just got a major accolade, as Edmunds just revealed the Rear-Wheel-Drive trim of the all-electric sedan is the most efficient EV that is currently in production.
The 2026 Tesla Model 3 Rear-Wheel-Drive not only beat its EPA-estimated range by 30 miles, but it also bested its efficiency mark by 13.2 percent. The Model 3 tested by Edmunds traveled 393 miles, beating its EPA rating by 8.3 percent, while it returned 21.7 kWh per 100 miles, or 4.61 mi/kWh.
Beating those two metrics is especially pertinent when it comes to EV ownership and driving down the cost of ownership from ICE counterparts across the board. The real money savings come from driving down the cost of driving per mile, especially when it comes to high-mileage driving.
Edmunds stated in its report and review that the process it uses to test EV efficiency is aimed at giving “the most accurate representation of a car’s real-world range.” The assessment uses a strict route that features 60 percent city and 40 percent highway driving, and an average speed of 40 MPH across the trip.
It also drives each car within 5 MPH of all posted speed limits, and the climate control is set on Auto at 72 degrees to ensure even testing. In other words, Edmunds does not use methods to maximize efficiency, and instead tries to make it reasonable to achieve the same ratings yourself.
In comparison to other EVs, it beat the 2026 Mercedes-Benz CLA 350, which went 385 miles, as well as the 2026 Audi A6 Sportback E-tron Prestige AWD, which traveled 392 miles. Only the Mercedes-Benz CLA 250+ traveled farther, making it an impressive 434 miles on a charge.
However, the Tesla Model 3 RWD’s efficiency is “unmatched” because of its incredibly low energy usage per mile.
🚨 Tesla Model 3 RWD:
-At $36,990, it is $9,000 cheaper than the average transaction price for a new car ($46,023 via KBB)
-Was 13.2% more efficient than its EPA estimate
-Traveled 393 miles on a charge despite its 363-mile EPA range https://t.co/Grov2hXqpa pic.twitter.com/Zl8rnZZLIB
— TESLARATI (@Teslarati) June 8, 2026
The Model 3 Rear-Wheel-Drive might be the best bang-for-your-buck EV if you’re looking to buy new and want access to features like Full Self-Driving, while also being aware of efficiency. This trim of the Model 3 is also priced over $9,000 cheaper than what Kelley Blue Book says the average transactional price for a new car was in May 2026, which sits at $46,023.
If you’re looking for something with more speed, an All-Wheel-Drive drivetrain, or more premium features, the Premium trims of the Model 3 currently come with one year of Free Supercharging.
The Ontario Teachers’ Pension Plan (OTPP) stands to reap one of the most extraordinary returns in pension fund history thanks to a bold 2019 investment in SpaceX.
According to a recent report from The Globe and Mail, the Toronto-based fund invested roughly $300 million CAD (~$220 million USD at the time) in Elon Musk’s space company as its inaugural deal through the Teachers’ Innovation Platform.
At SpaceX’s anticipated $1.75 trillion IPO valuation, set for a mid-June debut on Nasdaq under ticker $SPCX, that stake could now be worth up to $11.6 billion USD. This would represent a roughly 50x return and easily become OTPP’s most successful single investment ever.
The fund manages $279 billion in assets for approximately 346,000 working and retired teachers in Ontario, potentially delivering an average boost of around $33,500 per member if fully realized.
SpaceX has filed its S-1 and plans to price shares at $135 each, aiming to raise a record $75 billion in what would be the largest IPO in history, surpassing Saudi Aramco. The company reported $18.67 billion in revenue for 2025, driven primarily by Starlink satellite internet growth and NASA contracts, though it continues to post significant losses tied to ambitious R&D in Starship and AI initiatives.
Important pieces moving forward include:
- Starlink Expansion: The satellite broadband service is scaling rapidly, targeting global connectivity, especially in underserved rural and remote areas. This segment offers massive recurring revenue potential as numbers climb.
- Starship and Reusability Leadership: SpaceX’s fully reusable Starship aims to slash launch costs dramatically, enabling frequent missions, Mars ambitions, and lucrative government/defense contracts. Success here could unlock exponential growth.
- AI and Diversification: Recent moves, including ties to xAI, position SpaceX in high-growth AI infrastructure, broadening beyond traditional aerospace.
- Validation Scrutiny: While the $1.75 trillion target excites investors, analysts like Morningstar value the company closer to $780 billion, citing high multiples (around 90x trailing revenue) and execution risks. A 180-day lockup period will prevent early investors like OTPP from selling immediately post-IPO.
The irony has not been lost on observers. Ontario’s government previously canceled a Starlink rural internet contract amid political tensions involving Musk, yet the pension fund’s savvy investment, made when SpaceX was valued around $33-36 billion, and Starlink was nascent, delivers outsized gains independent of politics.
For OTPP, this windfall strengthens its already solid 111 percent funding ratio and underscores the value of patient, innovation-focused capital allocation.
For SpaceX, the IPO marks a new chapter: greater transparency, access to public markets for talent retention and growth capital, and heightened pressure to deliver on its multi-planetary vision.
All eyes are fixed on whether SpaceX can justify its lofty valuation through sustained execution. For Ontario teachers, the returns are already stellar, but SpaceX, like other Musk companies in the past, has plenty of things to prove. Perhaps the most ideal person for the job is at the helm, hoping to bring the company to a massive valuation.
Tesla tipped its hand at where Robotaxi is heading next
Tesla Model 3’s cheapest trim just got a major accolade
