Tesla Inc. is well-known for its lawsuits, but in a new twist, the company founded and run by Elon Musk is suing a Tesla owner in China for defamation.

The story starts with a Tesla Model S owner known as Han Chao, who sued Tesla after buying the vehicle second-hand from the company, then discovered it had previously been in a major traffic accident.

Tesla was alleged to have advertised the vehicle as having no major accidents or structural damage, and Han said that he had double-checked with the salesperson. According to the South China Morning Post, in August 2019, Han heard a banging noise and the car shut down when driving.

He asked Tesla to replace the vehicle but was offered repairs instead. Upon taking the car for a third-party evaluation, traces of cutting and welding of the car’s side rear panels were discovered, meaning that it had previously been in an accident.

Han won the court case, with a Chinese court saying that it constituted consumer fraud. Tesla was ordered to pay him RMB 1.139 million ($176,000) in the form of a refund and compensation. Han had been asking for a payment of RMB 5.05 million ($781,000).

After Tesla lost an appeal, the matter would usually have ended there, but Tesla hasn’t taken the court ruling lying down. In response, Tesla has now filed multiple lawsuits against Chao and is demanding damages.

Pandaily reported today that the lawsuits claim Han infringed the firm’s reputational rights and harmed Tesla’s reputation, while the remaining two cases relate to Han’s use of two courtesy cars. In the latter, Telsa claims that Han used two courtesy cars for a long time and failed to return them according to the contract, causing damage to the two vehicles.

In a statement on Weibo, Tesla said it has “always hoped to handle related affairs without occupying public resources” and that it abides by laws and regulations.

What is surprising about this case is that apparently, it’s not the only one. Chinese site The Economic Observer did a search for Chinese court judgments online and found that Tesla had hundreds of litigation records in courts across China.

Photo: Vauxford/Wikimedia Commons