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Tesla's Legal Tactics in China Draw Scrutiny Over Consumer and Media Lawsuits

The automaker has leveraged Chinese courts to win defamation cases against unhappy customers and critical journalists, raising concerns about transparency and accountability.

FILE - Tesla vehicles are parked outside of a building at the Zhongnanhai leadership compound during a meeting between Tesla CEO Elon Musk and former Chinese Premier Li Keqiang in Beijing, Wednesday, Jan. 9, 2019. (AP Photo/Mark Schiefelbein, Pool, File)
A Tesla Model 3 electric vehicle is displayed for sale at a Tesla showroom on October 12, 2020 in Beijing, China.

Overview

  • Tesla has sued at least six Chinese car owners and multiple journalists and media outlets for defamation, winning nearly all cases reviewed by the Associated Press.
  • A Chinese court recently ruled against Zhang Yazhou, a Tesla owner who protested alleged brake failures, ordering her to pay $23,000 in damages and issue a public apology.
  • Tesla’s success in Chinese courts is unusual, with the automaker winning nearly 90% of cases filed by customers over safety, quality, and contract disputes.
  • The company’s favorable outcomes are attributed to its close ties with influential Chinese officials, including Premier Li Qiang, who supported Tesla’s entry into the Chinese market.
  • Critics argue Tesla’s aggressive legal strategy has created a chilling effect on consumer complaints and media coverage, limiting accountability and transparency.