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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.
Elon Musk
ARK’s SpaceX IPO Guide makes a compelling case on why $1.75T may not be the ceiling
ARK Invest breaks down six reasons SpaceX’s $1.75 trillion IPO valuation may be justified.
ARK Invest, which holds SpaceX as its largest Venture Fund position at 17% of net assets, has published a detailed investor guide to why a SpaceX IPO may be grounded in a $1.75 trillion target valuation.
The financial case starts with Starlink, SpaceX’s satellite internet constellation, which has surpassed 10 million active subscribers globally as of early 2026, with 2026 revenue projected to exceed $20 billion. ARK’s research puts the total satellite connectivity market opportunity at roughly $160 billion annually at scale, and Starlink is adding customers faster than any telecom network in history. That growth alone would justify a substantial valuation.
Additionally, ARK notes that SpaceX has reduced the cost per kilogram to orbit from roughly $15,600 in 2008 to under $1,000 today through reusable Falcon 9 hardware. A fully operational Starship targeting sub-$100 per kilogram would represent a significant cost decline and open markets that do not currently exist. SpaceX executed a staggering 165 missions in 2025 and now accounts for approximately 85% of all global orbital launches. That infrastructure position took decades to build and would be nearly impossible to replicate at comparable cost.
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The February 2026 merger with xAI added a layer to the valuation that straightforward financial models struggle to capture. ARK argues that at sub-$100 launch costs, orbital data centers could deliver compute roughly 25% cheaper than ground-based alternatives, without power grid delays, permitting friction, or land constraints. Musk has stated a goal of deploying 100 gigawatts of AI computing capacity per year from orbit.
The $1.75 trillion figure itself is not a conventional earnings multiple. At roughly 95x trailing revenue, it prices in Starlink’s adoption curve, Starship’s cost trajectory, and the orbital compute thesis together. The public S-1 prospectus, due at least 15 days before the June roadshow, will give investors their first complete look at the financials to test those assumptions. ARK’s position is that the track record earns the benefit of the doubt. Fully reusable rockets were considered unrealistic for years. Starlink was considered financially unviable. Both happened on timelines that surprised skeptics.
Elon Musk
Ford CEO Farley says Tesla is not who to look at for EV expertise
Interestingly, Farley has been one of the most hellbent CEOs in terms of a legacy automaker standpoint to push the EV effort. It did not go according to plan, as Ford took a $19.5 billion charge and retreated from its EV push in late 2025.
Ford CEO Jim Farley said in a recent podcast interview that Tesla is not who Americans should look at to beat Chinese carmakers.
The comments have sparked quite a bit of outrage from Tesla fans on X, the social media platform owned by Elon Musk.
Farley said that Chinese automakers are better examples of how to beat competitors. He said (via the Rapid Response Podcast):
“If you’re an American and you want us to beat the Chinese in the car business, you’re all going to want to pay attention, not necessarily to Tesla. Nothing against Tesla—they’ve been doing great—but they really don’t have an updated vehicle. The best in the business for us, cost-wise and competition-wise, supply chain, manufacturing expertise, and the I.P. in the vehicle, was really BYD. In this next cycle of EV customers in the U.S., they want pickups and utilities and all these different body styles. But they want them at $30,000, not $50,000. Like the first inning, they want them affordably.”
Despite Farley’s synopsis, it is worth mentioning that Tesla had the best-selling passenger vehicle in the world last year, and in China in March, as the Model Y continued its global dominance over other vehicles.
Musk responded to Farley’s comments by stating:
“This is before Supervised FSD is approved in China. Limiting factor is production output in Shanghai.”
This is before supervised FSD is approved in China. Limiting factor is production output in Shanghai.
— Elon Musk (@elonmusk) April 19, 2026
Interestingly, Farley has been one of the most hellbent CEOs in terms of a legacy automaker standpoint to push the EV effort. It did not go according to plan, as Ford took a $19.5 billion charge and retreated from its EV push in late 2025.
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Instead, Ford is “doubling down on its affordable” EVs and said it would pivot from its previous plans.
Reaction from Tesla fans was pretty much how you would expect. Many said they have lost a lot of respect for Farley after his comments; others believe he is the last CEO anyone should be taking advice on EVs from.
Nevertheless, Farley’s plans are bold and brash; many consider Tesla the most ideal company to replicate EV efforts from. It will be interesting to see if Ford can rebound from this big adjustment, and hopefully, Farley’s plans to replicate efforts from BYD work out the way he hopes.
Elon Musk
SpaceX wins its first MARS contract but it comes with a catch
NASA awarded SpaceX a $175 million Mars rover contract while the White House proposes cutting the mission.
NASA just signed a $175.7 million contract with SpaceX to launch a Mars rover that the White House is simultaneously trying to defund. The contract, awarded on April 16, 2026, tasks SpaceX’s Falcon Heavy with launching the European Space Agency’s (ESA) Rosalind Franklin rover from Kennedy Space Center in Florida, no earlier than late 2028. It would mark the first time SpaceX has ever sent a payload to Mars.
Under NASA’s Rosalind Franklin Support and Augmentation project, known as ROSA, the agency is providing braking engines for the rover’s descent stage, radioisotope heater units that use decaying plutonium to keep the rover warm on the Martian surface, additional electronics, and a mass spectrometer instrument, as noted by SpaceNews.
Those nuclear heating units are the reason an American rocket was required at all. U.S. export controls on radioisotope technology mean any payload carrying them must launch on a domestic vehicle, which narrowed the field to SpaceX and United Launch Alliance. Falcon Heavy’s pricing made it the practical choice.
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Falcon Heavy debuted in February 2018 and has 11 launches to its record. The rocket has not flown since October 2024, when it sent NASA’s Europa Clipper toward Jupiter. The three-core design, built from modified Falcon 9 first stages, gives it the lift capacity needed for deep space planetary missions that a single Falcon 9 cannot reach.
The Rosalind Franklin rover has been sitting in storage in Europe for years. It was originally due to launch in 2022 as a joint mission with Russia, but Russia’s invasion of Ukraine ended that partnership, leaving the rover built but stranded without a launch vehicle or landing hardware. NASA stepped back in through a 2024 agreement with ESA to rescue the mission. The rover is designed to drill up to two meters below the Martian surface in search of evidence of past life, a science objective no previous mission has attempted at that depth.
The contradiction at the center of this story is hard to ignore. The White House’s fiscal year 2027 budget proposal included no funding for ROSA and did not mention the mission at all in the detailed congressional justification document released April 3.
Musk has long argued that reaching Mars is not optional. “We don’t want to be one of those single planet species, we want to be a multi-planet species.” Whether this particular mission survives Washington’s budget fight, the Falcon Heavy contract means SpaceX is now formally on record as the rocket that could get humanity’s next Mars science mission off the ground.
The timing of this contract carries extra weight given that SpaceX filed confidentially with the SEC in early April and is targeting an IPO roadshow in the week of June 8. It would be the largest public offering in history.
ARK’s SpaceX IPO Guide makes a compelling case on why $1.75T may not be the ceiling
Ford CEO Farley says Tesla is not who to look at for EV expertise
