Zhang Yazhou found herself trapped in a harrowing predicament while riding as a passenger in her Tesla Model 3.
As they neared a red light, her father’s panicked voice cut through the air, revealing that the brakes had failed.
In a desperate bid to avert disaster, he swerved past two other cars, only to collide with an SUV and a sedan before finally crashing into a concrete barrier.
The collision left Zhang in shock, staring at the deflating airbag in front of her.
She had previously voiced concerns about the car’s braking system but never anticipated that her complaints would lead to a defamation lawsuit filed against her by Tesla.
In a surprising twist, a Chinese court ruled in Tesla’s favor, ordering Zhang to pay over $23,000 in damages and issue a public apology to the automotive powerhouse.
Confrontational Legal Strategy
Zhang’s ordeal is not an isolated case.
Under Elon Musk’s leadership, Tesla has taken a confrontational stance in China, targeting customers who report issues with their vehicles, including mechanical failures and accidents.
Over the past four years, at least six owners have faced legal action for their grievances.
Furthermore, the company has sued several bloggers and two Chinese media outlets for publishing critical reports, winning almost all of these cases, with two remaining under appeal.
This aggressive strategy sets Tesla apart from other automakers in China, where suing customers is an uncommon practice.
The company appears to leverage support from influential figures within the Communist Party to stifle criticism and evade accountability.
An investigation by the Associated Press highlights a pattern: Tesla has thrived within a system where regulatory bodies, media, and the judiciary operate closely with the Party, often leading to favorable outcomes for the company.
Substantial state backing, including attractive loans and tax incentives, has bolstered Tesla’s reputation among Chinese consumers and media, with reports of negative coverage being quashed.
Escalation of Complaints
Following the crash in February 2021, the aftermath was grim for Zhang.
While she and her niece escaped injury, her parents suffered concussions and required hospitalization.
In her pursuit of answers, Zhang lodged a complaint with local authorities, demanding both a refund and compensation.
She sought access to the pre-crash data from Tesla, an entreaty the company denied.
Feeling ignored and disheartened by Tesla’s representatives, Zhang decided to take her grievances public.
She covered her damaged car with a banner denouncing the alleged brake failure and staged protests outside a Tesla dealership and later at an auto show, hoping to confront company executives.
Her activism captured significant online attention, culminating in her detention by security for five days.
Speculation arose around the motives behind Zhang’s protests, with rumors suggesting outside influence from competitors or governmental entities.
Nevertheless, she firmly asserted that her actions were genuine expressions of frustration.
In response to Tesla’s portrayal of her as a troublemaker, she filed her own defamation suit against the company.
The Broader Implications
Tesla countered with its own lawsuit, claiming that Zhang had spread false information detrimental to its reputation, seeking hefty damages.
This legal battle unfolded against a backdrop of mounting criticism from other Tesla owners reporting similar issues.
Ultimately, the company released the crash data, which insinuated that her father had been driving too fast and that the brakes had functioned properly to reduce the severity of the crash.
However, this disclosure also included Zhang’s personal vehicle details, leading to harassment directed at her family and escalating her concerns for privacy.
When Zhang attempted to file another suit against Tesla for invading her privacy, she encountered further legal hurdles.
In May 2024, a Shanghai court ruled against her in the defamation case, concluding that her public complaints exceeded reasonable limits of criticism, and mandated an apology and damages be paid to Tesla.
Despite this overwhelming setback, Zhang remains steadfast, viewing her appeals as a fight for transparency and accountability from a powerful corporation.
She believes that as a consumer, she should be free to voice her experiences without the fear of retribution from a major player like Tesla.
Her prospects for a successful appeal against Tesla appear dim.
The company has consistently triumphed in lawsuits against disgruntled customers and critics.
Reports indicate that, out of numerous civil cases involving Tesla, only a few yielded favorable outcomes for consumers.
Tesla’s triumphs in these cases, according to the Shanghai High People’s Court, arise from fair trials based on objective facts, with the court asserting that winning does not imply preferential treatment.
Automotive experts have noted the unusual nature of a foreign firm enjoying such consistent legal success in China.
Tesla’s commendable standing in the Chinese market owes much to connections with influential political figures, particularly Li Qiang, who has supported the company’s initiatives, facilitating a favorable operating environment.
Under Li’s leadership, Tesla became the first foreign automaker to maintain total control over its operations in China, reaping benefits from low-interest loans and generous tax breaks.
Elon Musk’s tactical business acumen and networking have solidified his influence within the country, as he continues to engage with key political figures during his visits.
These interactions illustrate the complex relationship between Musk’s business interests and significant political dynamics.
Concerns abound regarding the implications of Musk’s connections, especially in the U.S., where safety investigations and regulations could suffer under the current administration.
In America, Tesla has faced similar legal challenges related to vehicle safety, with ongoing lawsuits addressing various issues.
While Tesla has generally refrained from suing U.S. customers over their complaints, Musk has considered legal action against media outlets for negative reports.
In China, however, Tesla has adeptly used its legal capabilities to silence dissent.
Reports suggest that media personnel have received informal instructions to avoid publishing unfavorable coverage of the company, with Tesla resorting to lawsuits against journalists and media outlets to maintain a firm grip on its narrative.
As competitors like BYD and Nio also pursue legal actions against critics, Tesla’s proactive approach stands out for its specific focus on addressing customer discontent.
The accounts of other consumers, such as Chen Junyi, paint a picture of intimidation, where individuals are met with significant legal challenges for raising concerns about vehicle safety.
As the automotive landscape continues to evolve, the balance of power between consumers and corporations remains a hot topic for discussion.
Source: Claimsjournal.com
