IM Motors CEO Apologizes to Tesla China: FUD Claims About Brake Failure Were Wrong | Taha Abbasi

Taha Abbasi has long argued that the wave of anti-Tesla misinformation — particularly in China — would eventually face a reckoning. This week, that prediction materialized when Liu Tao, co-CEO of IM Motors, publicly apologized to Tesla China for false claims he made about a fatal 2022 traffic accident in Chaozhou, Guangdong province.

The Original Incident

In November 2022, a serious traffic accident in Chaozhou, China involved a Tesla vehicle. The incident was widely covered, and in the immediate aftermath, Liu Tao — then serving as co-CEO of IM Motors, a joint venture backed by SAIC Motor, Alibaba, and Zhangjiang Hi-Tech — posted on Weibo suggesting the Tesla involved in the crash had a safety defect, specifically a brake failure.

The post went viral. In China’s competitive EV market, where domestic brands battle Tesla for market share, allegations of brake failure carry enormous weight with consumers. The claim fed into a broader narrative of Tesla safety concerns that had persisted since the Shanghai Auto Show brake protest incident in 2021.

As Taha Abbasi notes, this pattern of rapid, unverified accusations followed by slow corrections is a recurring challenge for Tesla in markets where competitors have incentives to amplify fear, uncertainty, and doubt.

The Apology and the Facts

Liu Tao’s formal statement, reported by Sina News, was unequivocal. He acknowledged that his initial Weibo post was based on “limited publicly available information” and that subsequent investigations proved him wrong. The traffic police’s accident liability determination and forensic analysis, completed in May 2023, concluded that the Chaozhou accident was not caused by a Tesla brake failure.

“The aforementioned findings and opinions regarding the investigation conclusions of the Chaozhou accident corrected the erroneous statements I made in my previous Weibo post, and I hereby clarify and correct them,” Liu stated. “I apologize for the negative impact this has caused.”

Liu had deleted his original post four hours after publishing it — but by then, the damage was done. The misinformation had spread across Chinese social media, contributing to a narrative that took years to fully correct.

Why This Matters Beyond China

Taha Abbasi sees this apology as significant for several reasons:

• Executive accountability: A co-CEO of a major automotive brand publicly admitting to spreading false safety claims about a competitor is extraordinarily rare. It sets a precedent for accountability in the EV industry.
• The misinformation lifecycle: The false claim spread in hours. The investigation took six months. The apology came three years later. This asymmetry — where misinformation travels at the speed of social media while corrections crawl — is a fundamental challenge for technology companies.
• Competitive dynamics: In markets where Tesla faces dozens of domestic competitors, misinformation becomes a competitive weapon. This apology may discourage similar tactics from other executives.
• FSD implications: As Tesla pushes Full Self-Driving technology globally, false safety narratives could delay regulatory approval and consumer adoption. Correcting the record matters for the entire autonomous vehicle industry.

The Broader Pattern of Tesla FUD

This is not an isolated incident. Tesla has faced a persistent pattern of misinformation regarding vehicle safety, particularly around unintended acceleration and brake failure claims. In virtually every case, thorough investigation has exonerated Tesla’s systems. The NHTSA in the United States conducted extensive reviews of unintended acceleration claims and found no vehicle-based cause.

Taha Abbasi, who tests Tesla FSD and Cybertruck systems in real-world conditions, understands the gap between perception and reality. The vehicles he tests daily demonstrate consistent, reliable performance — yet the narrative of Tesla safety concerns persists, fueled by incidents like Liu’s now-retracted claims.

What This Means for Tesla in China

Tesla China has been performing well despite the competitive environment. January 2026 sales rose 9% year-over-year, demonstrating resilience in the world’s most competitive EV market. The IM Motors apology adds to a narrative of vindication that could strengthen consumer confidence.

For the Chinese EV market as a whole, this incident is a reminder that short-term competitive tactics can backfire. Competing on technology, price, and features is sustainable. Competing on misinformation is not.

The Lesson

Truth has a lag, but it does arrive. For technology builders like Taha Abbasi who prioritize real-world testing and evidence over narratives, this apology is a vindication of the approach: test, document, verify, and let the data speak. The FUD cycle is powerful, but facts are more durable.

---

About the Author: Taha Abbasi is a technology executive, CTO, and applied frontier tech builder. Read more on Grokpedia | YouTube: The Brown Cowboy | tahaabbasi.com