Tesla Sues Customers & Journalists in China for Complaining About Its Cars

Key Takeaways

• Tesla has been aggressively suing its customers and journalists in China who complain about its cars, including a high-profile case where Zhang Yazhou was fined $23,000 after criticizing a brake failure that caused an accident.
• It has sued over 6 customers in the past, as well as media outlets and bloggers, for reporting malfunctions and negative experiences and won every case.
• Tesla's close relationship with powerful Chinese officials, particularly Li Qiang, has allowed the company to benefit from favorable regulatory conditions.

Tesla has been aggressive in protecting and maintaining a positive narrative" about its EVs. The word aggressive might sound like an understatement when the situation is that Tesla is literally suing its own customers for complaining about its products.

Picture this: Zhang Yazhou, a user of a Tesla Model 3, was sitting in the passenger seat when her father suddenly panicked when he realized that the brakes had stopped working. Unable to control the car, they ended up crashing into a large concrete barrier, but not before plowing into an SUV and a Sedan.

Her parents were sent to hospital because of this mishap. Angry with the situation, as anyone would be, Zhang publicly protested against Tesla. As a response, Tesla filed a case for defamation and won. The girl was left to pay a USD 23,000 penalty and a public apology for her criticism.

As a consumer, even if I said something wrong, I have the right to comment and criticise. I spoke about my feelings as a user of the car. It has nothing to do with damaging their reputation. - Zhang

While the appeal hasn't concluded yet, only little can be done about it after the final verdict has been drawn.

Tesla And China - Is Musk Exploiting His Position?

It isn't uncommon for auto companies to sue their own customers, in China or anywhere else. But Zhang wasn't the only one to face this kind of response for reporting sudden vehicle malfunctions, quality complaints, or mechanical failures that led to accidents.

In the past, the company has not just sued more than 6 customers for giving negative reviews, but it has also sued bloggers and Chinese media outlets for simply writing critically about the company.

The Associated Press (AP) was able to determine verdicts of these cases. Tesla has won almost all of these cases - not just the ones where they sued the customer, but also prevailed in lawsuits that the customers filed against it.

The stats could be seen as an indication of how the company could be leveraging its connections with powerful leaders in China's government to limit its accountability and exploit its customers. The court, however, refused any special protection being given to the company.

Li Qiang is a core member of China's ruling communist party. The first Chinese Tesla factory was built under his surveillance on the outskirts of China's financial capital. He also helps make Tesla the very first foreign automaker to be allowed complete control of this venture.

Tesla enjoyed lower-than-market loan rates, tax breaks, and several other regulatory benefits that helped Musk position itself quickly in the Chinese market and leverage the country's huge client base.

AP's information comes right in time when several experts are saying that Musk is weakening the US systems through his strong alliance with Trump. He recently got into trouble for accessing federal documents, allegedly breaching federal privacy law.

The post Tesla Sues Customers & Journalists in China for Complaining About Its Cars appeared first on Techreport.