Crash victim in China forced to pay $23,000 to Tesla
What's the story
Tesla sued a Chinese woman named Zhang Yazhou for defamation and won $23,000 in damages.
The lawsuit was filed after she claimed that a brake failure in her Model 3 caused an accident that resulted in her parents' hospitalization.
After the accident, Yazhou had filed lawsuits against Tesla and also protested at an auto show, seeking compensation.
In response, based on Tesla's counter suit, a Shanghai court ruled that her complaints were unreasonable and ordered her to pay Tesla instead.
Legal battle
Accident aftermath and Tesla's response
Zhang's parents were hospitalized for four days with concussions.
Traffic police blamed the crash on her father's failure to maintain safe distance between vehicles. However, Zhang maintained it was due to brake failure.
She sought compensation and refund from Tesla, and asked for pre-crash data from her car to back her claim.
The company denied these requests, prompting Zhang to stage a protest outside a Tesla dealership where she displayed a banner reading 'Tesla brake failure' on her damaged vehicle.
Public outcry
Zhang's protest escalates at auto show
Zhang's protest reached a boiling point when she showed up at an April auto show and tried speaking to Tesla officials who ignored her.
She and a pregnant friend started shouting "Tesla brakes fail!" and jumped on a display model.
The stunt was filmed and widely circulated on social media, showing Zhang being dragged out by five security guards.
She was detained for five days. Tesla alleged Zhang was intentionally spreading false information and demanded $684,000 in damages.
Legal verdict
Court rules in favor of Tesla
Zhang had filed lawsuits against Tesla in October 2021 and March 2022, but lost both.
In a closed trial in May 2024, a Shanghai court ruled Zhang's public complaints exceeded reasonable and factual criticism.
The court ordered her to publicly apologize and pay $23,000 to cover damages and legal costs for Tesla.
Zhang has appealed this ruling saying, "I refuse to accept it. As a consumer, even if I said something wrong, I have the right to comment and criticize."
Plan
Tesla's legal strategy in China
Tesla has a history of defamation cases against clients who criticize its products in China.
In last four years, six car owners who complained about accidents and quality issues were sued. The firm also took legal action against six bloggers and two media outlets.
Tesla has won nearly 90% of civil cases over safety, quality, or contract disputes brought by customers in China.
Two Chinese journalists told Associated Press there is an "unwritten rule" to avoid critical coverage of Tesla.