Tesla sues customers, reporters to silence negative press

Tesla’s aggressive legal strategy in China has resulted in a nearly flawless track record in court, silencing critics, customers, and media outlets that challenge the company’s reputation. The electric car giant’s legal victories highlight its deep political connections and the limited recourse for those who speak out against it.

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Tesla’s . . . uh, unusual approach

Most automakers handle customer complaints and negative press through public relations efforts or internal dispute resolution. Tesla, however, has taken a different approach in China: suing dissatisfied customers for defamation.

One of the most notable cases involved Zhang Yazhou, who publicly protested after she claimed that a brake failure in her Tesla Model 3 caused an accident that hospitalized her parents. Tesla denied the allegations and sued Zhang for defamation. A Chinese court sided with Tesla, ordering her to pay over $23,000 in damages and issue a public apology.

“I refuse to accept it,” Zhang told the Associated Press, maintaining that she was simply voicing her experience as a consumer. Her case is now on appeal, but Tesla’s legal dominance in China suggests she faces an uphill battle.

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Musk’s powerful ally in China

Tesla’s success in China isn’t solely due to its products, it’s also a result of strong political backing. Li Qiang, China’s premier and the former party boss of Shanghai, played a crucial role in allowing Tesla to establish itself in the country. Under Li’s leadership, Tesla became the first foreign automaker permitted to operate in China without a local joint venture, giving it unprecedented control over its business.

The company also benefited from low-interest loans, tax breaks, and regulatory leniency. With this level of government support, Tesla has thrived in a market where foreign companies often struggle to gain legal or political advantages.

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A winning streak in the courts

Tesla has filed at least six defamation lawsuits against customers who reported issues with their vehicles and additional lawsuits against journalists and bloggers who wrote critical stories about the company. In every case where a verdict has been determined, Tesla has won.

Beyond defamation cases, Tesla has also prevailed against customers who have sued the company over vehicle defects or contract disputes. Out of 81 cases where car owners took Tesla to court, only nine resulted in victories for the plaintiffs—a strikingly low success rate for consumers in product-related lawsuits.

Media censorship and a chilling effect

Tesla’s legal strategy extends beyond the courtroom. Journalists in China report that negative coverage of Tesla is discouraged, with some media outlets outright avoiding criticism of the company due to its close ties with the government. Two Chinese media outlets—PingWest and ifeng.com—faced lawsuits after publishing reports critical of Tesla, with PingWest forced to issue an apology and pay damages.

This pattern of legal intimidation extends beyond Tesla, as domestic EV competitors like BYD, Nio, and Li Auto have also pursued defamation cases against bloggers. However, Tesla stands out for its willingness to take legal action against individual car owners.

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Final thoughts

Tesla’s use of the Chinese legal system to silence critics raises concerns about the state of consumer protection and free speech in the country. While the courts maintain that their rulings are fair, the overwhelming success Tesla has enjoyed suggests otherwise.

For now, Tesla’s dominance in China appears unshakable. But as consumer dissatisfaction grows and more cases draw public attention, it remains to be seen whether the company’s legal strategy will continue to go unchallenged or if it will eventually face the kind of scrutiny it has worked so hard to suppress.

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