Tesla wins defamation lawsuit against Chinese news outlet

Courtesy of Tesla China
Credit: Tesla China

Tesla doesn’t joke with its reputation. It recently won a court case against a Chinese media out that published fake news, calling the company a modern-day sweatshop in 2020. 

The court has ordered the outlet to delete the article, post a note admitting guilt, and pay monetary compensation.

2020 was a year Tesla faced a significant smear campaign in China. Media house PingWest joined in the action by publishing a piece that alleged without proof that Tesla operated a non-humane factory in Shanghai. The article also mentioned disruptive manufacturing processes and oppressive management.

Other allegations include Giga Shanghai using defective parts, which put their customers’ lives at risk, workers being denied their rightful additional pay, and being forced to eat instant noodles and expired bread.

To clear its name, Tesla decided to litigate against the defamation in the article. The outcome is favorable to the EV company as PingWest would be punished. Apart from removing the defaming article, PingWest will publish an apology to Tesla, to be displayed prominently for 30 days.

It will also pay compensation equivalent to US$14,000 to Tesla, Tesmanian reports.

Tesla China has a very active legal department. It recently got another favorable judgment against a Model X for defamation. The company is also suing a beer maker for trademark infringement.