We told you the story of Han Chao last September 21. This Tesla customer won RMB1,518,800 ($234,948 at the current exchange rate) from the company after winning a lawsuit against it. The Chinese courts decided Tesla committed fraud by selling him a defective and crashed car after claiming that it never had significant damages. When Chao thought everything was settled, Tesla counterattacked with a lawsuit for “infringement of reputation rights,” asking for a compensation of RMB 5.05 million ($781,200).
Chao shared the indictment in which Tesla makes four demands. The company urges him to stop defaming Tesla and delete all contents related to his lawsuit posted on Weibo. The American car maker also wants Chao to apologize on Weibo for 30 days to “eliminate the adverse effects” his actions would have caused.
Tesla then gets down to business. The company demands RMB5 million for economic losses and the compensation of expenses with rights protection – probably legal costs – in RMB50,000, which amounts to the final value of RMB5.05 million. A value that is quite ironic though.
The company had to pay Chao not only the money he spent on the car (RMB379,700, or $58,737) but also three times that value due to fraud. Although it is not clear how Tesla calculated the economic losses, as they represent a little less than three times what it has to pay to the customer.
Chao posted about the new lawsuit in a way that shows he is not willing to back down. Calling Tesla a gangster, a bully, a liar, and a fraudster, he wrote a sarcastic text saying how absurd it sounds for a fraud victim to hear he cannot talk about what the company did to him. He also noted that other automakers might learn from Tesla because selling a normal car would not make much profit. Selling a fraudulent one would earn them RMB5 million or RMB6 million if Tesla managed to win the lawsuit.
According to Pandaily, Chao would also have said that the car maker froze his bank accounts and is trying to scare him, but he is confident he will win again. After all, Chinese courts have determined that Tesla committed fraud against him. We just wonder how the company thinks that this new lawsuit was the right choice to protect its reputation.
Tesla then gets down to business. The company demands RMB5 million for economic losses and the compensation of expenses with rights protection – probably legal costs – in RMB50,000, which amounts to the final value of RMB5.05 million. A value that is quite ironic though.
The company had to pay Chao not only the money he spent on the car (RMB379,700, or $58,737) but also three times that value due to fraud. Although it is not clear how Tesla calculated the economic losses, as they represent a little less than three times what it has to pay to the customer.
Chao posted about the new lawsuit in a way that shows he is not willing to back down. Calling Tesla a gangster, a bully, a liar, and a fraudster, he wrote a sarcastic text saying how absurd it sounds for a fraud victim to hear he cannot talk about what the company did to him. He also noted that other automakers might learn from Tesla because selling a normal car would not make much profit. Selling a fraudulent one would earn them RMB5 million or RMB6 million if Tesla managed to win the lawsuit.
According to Pandaily, Chao would also have said that the car maker froze his bank accounts and is trying to scare him, but he is confident he will win again. After all, Chinese courts have determined that Tesla committed fraud against him. We just wonder how the company thinks that this new lawsuit was the right choice to protect its reputation.