Tesla China has taken more than 30 companies to court in recent months, seeking to recover government electric-vehicle (EV) subsidies the automaker says were improperly claimed after corporate customers failed to meet mandatory mileage thresholds.
The legal actions, which span multiple provinces and industries, highlight a long-standing but often overlooked requirement tied to China’s now-expired new-energy vehicle (NEV) subsidy program: company-registered vehicles must accumulate at least 20,000 kilometres (12,427 miles) within two years of purchase to qualify.
The issue first gained traction this week when a court notice revealed Tesla (Shanghai) Co., Ltd. had filed a contract dispute case against Hangzhou-based Wuyou (Joy) Media. According to local outlet Jiupai News, the media firm purchased a Tesla in 2022, during which Tesla advanced a RMB 7,761 (C$1,533/US$1,091) subsidy on its behalf.
As with all corporate NEV purchases, the contract specified the mileage requirement for the subsidy to be reimbursed by the central government.
Wuyou Media confirmed that its vehicle did not meet the 20,000-kilometre minimum within the two-year window, leaving Tesla unable to claim the subsidy later. The company said Tesla skipped direct negotiations and instead filed suit to reclaim the funds, though Wuyou Media added, “At present, we will directly settle with the other party and refund the relevant money.”
Court records show Tesla has initiated similar claims since July 2025, with more than 30 announcements of contract or sales-related disputes appearing in judicial databases. The defendants span construction, manufacturing, and media firms in Guangdong, Zhejiang, Jiangsu, Shandong, Hunan, and other regions.
Companies in Shenzhen, Jiaxing, and Shanghai told Jiupai News they were also sued for returning subsidies ranging from RMB 7,000 to RMB 15,000 (C$1,3830-$2,963) after their vehicles failed to reach the mandated mileage. (via CNEvPost)
China’s NEV subsidy program, which ended on December 31, 2022, required automakers to front subsidy amounts upfront and later apply for reimbursement only after vehicles met government conditions—including the two-year cumulative mileage threshold for corporate fleets. Individual buyers were not subject to the same requirements.
