Tesla suing drivers who complain about their cars after accidents – and winning
Technology
Tesla has sued at least six car owners in China
(Web Desk) - Zhang Yazhou was sitting in the passenger seat of her Tesla Model 3 when she said she heard her father’s panicked voice: The brakes don’t work! Approaching a red light, her father swerved around two cars before plowing into an SUV and a sedan and crashing into a large concrete barrier.
Stunned, Zhang gazed at the deflating airbag in front of her. She could never have imagined what was to come: Tesla sued her for defamation for complaining publicly about the car’s brakes — and won.
A Chinese court ordered Zhang to pay more than $23,000 in damages and publicly apologize to the $1.1 trillion company.
Zhang is not the only one to find herself in the crosshairs of Tesla, which is led by Elon Musk, among the richest men in the world and a self-described “free speech absolutist.” Over the last four years, Tesla has sued at least six car owners in China who had sudden vehicle malfunctions, quality complaints or accidents they claimed were caused by mechanical failures.
The company has also sued at least six bloggers and two Chinese media outlets that wrote critically about the company, according to a review of public court documents and Chinese media reports by The Associated Press.
Tesla won all eleven cases for which AP could determine the verdicts. Two judgments, including Zhang’s, are on appeal. One case was settled out of court.
It is not common practice for automakers — in China or elsewhere — to sue their customers. But Tesla has pioneered an aggressive legal strategy and leveraged the patronage of powerful leaders in China’s ruling Communist Party to silence critics, reap financial rewards and limit its accountability.
The AP review of Tesla’s record in China comes as Musk is wielding significant influence in President Donald J. Trump’s new administration, leading an effort to rapidly shrink the size of the federal government and oust employees deemed disloyal to the president.
His actions have raised concerns that Musk is weakening the U.S. system of checks and balances, in part, to benefit Tesla and his other companies.
In the United States, Elon Musk has found a powerful ally in Trump. Together, they have ransacked the federal government, freezing spending, suspending programs and dismissing prosecutors, government watchdogs and others that have traditionally acted as guardrails.
Tesla’s record in China shows how Musk has thrived in a system in which regulators, the media and the courts — which must all ultimately answer to the ruling Communist Party — are, by design, somewhat intertwined.
Tesla has profited from the largesse of the Chinese state, winning unprecedented regulatory benefits, below-market rate loans and large tax breaks. With a few pointed exceptions, Tesla has enjoyed largely ingratiating coverage in the Chinese press, and journalists told AP they have been instructed to avoid negative coverage of the automaker.
Tesla’s windfall has extended to the courts — and not just in legal actions Tesla has brought against customers. In a review of public court documents, the Associated Press found that Tesla won nearly 90% of civil cases over safety, quality or contract disputes brought by customers.
