Tesla Takes Customers to Court to Silence Its Critics in China
The carmaker is resorting to lawsuits to contain months of bad press.Tesla Takes Customers to Court to Silence Its Critics in China
In the past six months, Elon Musk’s electric vehicle giant has filed defamation claims against at least two Chinese citizens who raised concerns about the safety and quality of its vehicles. Tesla alleges the individuals groundlessly damaged its reputation and is asking for steep compensation. Meanwhile, the company’s in-house lawyers have taken to threatening social media personalities who publish similar views with legal action, demanding they retract the posts and apologize publicly.
While it’s “really rare” for companies to sue customers in China, “Tesla is using litigation to dampen the confidence of individual consumers in safeguarding their rights and, therefore, to forestall actions from other customers,” says Zhang Xiaoling, a partner at Haodong Law Firm in Beijing who specializes in consumer issues. With sophisticated data-analysis capabilities and deep pockets, carmakers make formidable courtroom opponents. “That brings more uncertainties and risks for consumers in the litigation,” Zhang says.