Latest Car News in India

The established electric car manufacturing company Tesla has started suing aggressively against the car owners in China, who reported vehicle malfunctions, accidents, or quality concerns.  Owned by billionaire Elon Musk, the company has also taken legal action against bloggers and media outlets that published critical reports, winning all eleven cases where verdicts were determined. It is reported that at least six car owners have faced legal action from Tesla, raising concerns over consumer rights and corporate influence in China’s judicial system.

 

 

Industry experts believe that Tesla's action is rare, and not every vehicle manufacturing company is suing dissatisfied customers. However, Tesla's approach has set an example in China, where legal and regulatory frameworks often favour well-connected corporations. According to a review by The Associated Press, the Chinese government is also benefiting Tesla through tax incentives and favourable press coverage.

 

The Case of Zhang Yazhou: This incident of an accident in a Tesla vehicle is related to Zhang Yazhou, while she was travelling with her father in a Tesla Model 3 when her father panicky uttered, “The brakes don’t work!” After which he lost control of the vehicle, and in an attempt to control on car, and crashed into an SUV and a sedan before hitting a concrete barrier. The accident, took place in Henan province in February 2021, with Zhang’s parents severely injured in the accident.

 

Zhang believed the accident happened due to the malfunction of brakes, and publicly raised her concern demanding compensation from Tesla. However, Tesla refused to provide full pre-crash data and, on the contrary, sued Zhang for defamation. In May 2024, the Shanghai court gave a judgement in favour of Tesla, ordering Zhang to pay over $23,000 in damages and issue a public apology. She has since appealed the ruling.

 

Government Influence and Court Decisions: It is believed that the support from Li Qiang, China’s current premier and former Shanghai party patron, has played an important role in strengthening Tesla’s position in China. Tesla was granted regulatory advantages, including the freedom to operate independently in the country without partnership of any domestic partnership.

Tesla’s legal success extends beyond defamation cases. The AP review found that Tesla won nearly 90% of cases related to safety, quality, and contractual disputes. This percentage of success is considered highly unusual for a foreign company operating in China.

 

Consumer Rights and Public Backlash: Anyhow Zhang’s actions have created awareness of consumer rights and the dominance of corporate powers in China’s judicial system. She not only filed complaints with regulators but also held public demonstrations, including one during an auto show in Shanghai, where she was detained for five days. After the incident Tesla released data from her vehicle, endorsing that the brakes were working properly at the time of the accident, although Zhang raised questions against the accuracy of the information. Her attempts to sue Tesla for defamation and privacy violations were unsuccessful. This has also started a debate between legal experts favouring Zhang’s case, putting a question on the judicial system of China being influenced by corporations involved in multiple ventures with different government agencies.

 

Despite the setbacks, Zhang remains determined to challenge Tesla’s legal victories, stating, “As a consumer, I have the right to voice my concerns. I refuse to accept that my criticisms should be silenced.” Her appeal is making people aware of consumer rights in China, however, legal experts believe that the chances of victory are very low. This incident also highlights the complexities of consumer rights, corporate power, and regulatory influence, raising critical questions about accountability and transparency in the world’s largest auto market.