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Tesla Wins Lawsuit Against BYD in China

There are reports that BYD made false claims about Tesla vehicles and that Tesla won a lawsuit against BYD in China.
Tesla Wins Lawsuit Against BYD in China

Tesla Lawsuit Win Against BYD

Tesla has won a lawsuit against BYD in China, as reported from the @ray4tesla Twitter account. According to the report, a BYD dealership blatantly fabricated and spread misinformation about Tesla brakes failing.

The BYD dealership was forced to apologize on social media for the wrongdoing and had to pay Tesla China about 50,000 CNY for the financial loss. For reference, 50,000 Chinese Yuan equals about $7,228 dollars. This doesn't seem like a lot of money.

Many are saying that the fine for this should be much more, and when I look at the amount, I have to agree. The amount is about 1/5 the cost of a Model 3 standard range in China and doesn't seem like anything. The damage from spreading misinformation can affect thousands or more of people and their perception and decision-making.

This happened at a BYD dealership, and those dealerships can have a bad reputation in China. Streaming and videos have become a big part of car sales, and anyone who has to post a video and admit they lied to customers is going to do damage to their brand. In the end, BYD is going to lose trust with this act.

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Why This Lawsuit Matters

That is the biggest thing that matters here, and it's not just BYD that is going to experience it. Because Tesla got such a large head start in EVs and that is where the world is going, other companies are going to feel the panic and do just about anything they can to get an edge. What other option do they have? They are too far behind.

When I look at companies in the U.S. and the transition to EVs, I see that only Tesla is transitioning fast enough. There isn't enough volume and production happening from any other company in the U.S. Ford, GM, Rivian, Lucid, and all the others aren't making them fast enough.

I believe other automakers are going to have to resort to other tactics besides simply making a large fleet of EVs and transitioning as fast as Tesla, such as spreading lies and misinformation. We see it happening all the time with Tesla.

FUD (fear, uncertainty, and doubt), are the techniques someone or a company will use when they know they cannot compete in areas such as price, performance, safety, features, software, and functionality. That is why you see so many negative news stories about Tesla. Is Tesla perfect? Can their cars crash or catch on fire? Sure they can, but it isn't at the rate you would think based on media reports.

What do you think about this lawsuit between Tesla and BYD? Is the $ amount too small? Does the lawsuit even matter?

In Related News: Tesla Model Y Is Starting to Lead the World in Sales

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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.

Image Credit, Tesla, Screenshot

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