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.

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.