CNBC AI News, July 14th – After more than four years and 1,500 days, the saga known as the “Tesla Brake Gate” appears to be drawing to a close, prompting reflection from Tesla executives.
Tesla Vice President Grace Tao publicly recalled the 2021 Shanghai Auto Show incident, stating, “We invited Tesla owners to volunteer and explain the car that year. On media day, they couldn’t get in. After the flood of negative news, we didn’t expect them to return in the following days. However, the next day, they all showed up and said specifically, ‘We are here for this. We must stand up and explain how good this car is.’ It’s hard to describe that feeling of gratitude!”
Tao emphasized that Tesla’s current success is built on the support of millions of vehicle owners. “We may not be able to satisfy our owners 100% in every area, but we will use 100% of our efforts to live up to their trust. We will persist in doing the right thing, and leave the rest to time,” she stated. This sentiment emerges following a legal ruling that, while in Tesla’s favor, doesn’t fully resolve the underlying safety concerns.
Prior to this, the Qingpu District People’s Court of Shanghai upheld the initial verdict in the case: Zhang, the woman from Henan who protested atop a Tesla at the Shanghai Auto Show, was found to have infringed on Tesla’s reputation and was ordered to issue an apology and pay ¥170,000 (approximately $24,000) in damages. Additionally, Feng, a media professional who organized and orchestrated the Shanghai Auto Show protest, was ordered to apologize to Tesla and pay ¥250,000 (approximately $35,000) in damages.
According to an assessment report issued by a judicial appraisal institution, the “Shanghai Auto Show Incident” resulted in a direct loss of over ¥170 million (approximately $24 million) in orders and tens of millions of yuan in goodwill losses for Tesla.
In response, the female owner involved in the protest stated, “As everyone knows, my lawsuit with Tesla concerns reputation rights, which is just a peripheral issue. The upholding of the original verdict does not mean that Tesla’s brakes are not faulty, because reputation rights are not a product quality dispute.” This statement hints at the larger, unresolved issue of vehicle safety and the ongoing struggle to prove or disprove claims of brake malfunctions.
Proving whether Tesla’s brakes malfunction requires more data. The data-related case is still under review in Beijing’s Daxing Court, with no verdict yet reached. The core question of vehicle safety therefore remains open, highlighting the complexities of balancing corporate reputation with consumer concerns in the rapidly evolving landscape of electric vehicle technology.
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