Tesla's Retrial Request Denied; Court Rules "Brake Failure" Claim Defamatory and Factually Baseless

During the Shanghai Auto Show on April 19, 2021, Ms. Zhang climbed onto the roof of a Tesla display vehicle and shouted, "Tesla’s brakes failed!"—an incident that drew widespread public attention. Subsequently, in October 2021, Tesla (Shanghai) Co., Ltd. filed a lawsuit against Ms. Zhang, alleging that her actions infringed upon the company's right to reputation and seeking RMB 5 million in damages. After first-instance, second-instance, and retrial review proceedings, the courts consistently ruled that Ms. Zhang’s claim of "brake failure" lacked objective factual basis. The courts held that her conduct exceeded the bounds of reasonable consumer criticism, deviated from legitimate oversight purposes, and thus constituted an infringement of Tesla’s right to reputation, for which she must bear tort liability. On July 11, 2025, the Shanghai No. 2 Intermediate People's Court issued its second-instance judgment, upholding the original ruling and ordering Ms. Zhang to issue a public apology to Tesla and pay approximately RMB 172,300 in compensation. Ms. Zhang and another individual, Mr. Feng, subsequently applied to the Shanghai High People's Court for a retrial, but both applications were rejected. The court also found that Mr. Feng had repeatedly posted statements targeting Tesla on Weibo, which likewise constituted defamation, requiring him to issue a public apology. Separately, Ms. Zhang is involved in another case against Tesla concerning a sales contract dispute. In September 2025, the Daxing District People's Court in Beijing ruled in the first instance that Tesla must provide Ms. Zhang with the complete vehicle data recorded during the 30 minutes preceding the accident, holding that this request fell within the scope of consumers’ right to information and was both reasonable and necessary. Tesla has appealed this decision, and the second-instance proceeding is currently underway.