Tesla vehicles are parked outside of a building at the Zhongnanhai leadership compound during a meeting between Tesla CEO Elon Musk and former Chinese Premier Li Keqiang in Beijing, Wednesday, Jan. 9, 2019. (AP Photo/Mark Schiefelbein, Pool, File)

In response to Zhang's lawsuit, Tesla filed a suit of its own claiming that Zhang had damaged the brand by deliberately spreading false information. The company, which is worth $1.05 trillion, asked for 5 million yuan ($684,000) in damages.

Tesla sued a Chinese woman named Zhang Yazhou for defamation and won $23,000 in damages. The lawsuit was filed after she claimed that a brake failure in her Model 3 caused an accident that resulted in her parents' hospitalization.

A report claims that Tesla has sued "at least" six car owners in China over the past four years after complaining about mechanical issues.

Zhang Yazhou was sitting in the passenger seat of her Tesla Model 3 when she said she heard her father’s panicked voice: The brakes don’t work! Approaching a red light, her father swerved around two cars before plowing into an SUV and a sedan and crashing into a large concrete barrier.

Zhang Yazhou faced legal action from Elon Musk's Tesla, with a Chinese court ruling against her in a complaint against the automaker, for alleged brake failure of her Tesla Model 3.