Alleged Multi-State Tesla Fraud Scheme Busted in Tennessee

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Knoxville, TN – May 30, 2026 – A suspected multi-state vehicle fraud operation unraveled this week after two Virginia men were arrested while allegedly attempting to take possession of a new Tesla using stolen identities and fraudulent credentials.

According to the Knoxville Police Department, Property Crimes Detectives began investigating an online purchase of a 2026 Tesla Model S from a Tesla dealership in West Knoxville after identifying several red flags associated with the transaction. Investigators discovered the account used to purchase the vehicle had links to previous fraudulent activity, and the driver’s license information submitted for pickup did not match the photograph provided by the buyer.

Authorities say the suspects, identified as 22-year-old Kaiheng Ding and 25-year-old Yaoxu Zhou, traveled from Virginia to Tennessee and arrived at the dealership on May 26 to complete the transaction and take delivery of the vehicle.

Police allege Zhou presented a fraudulent Delaware driver’s license and completed the necessary paperwork before obtaining access to the new Tesla. Detectives moved in and arrested both men as they exited the dealership.

The investigation took another turn when authorities determined the suspects had arrived in Knoxville driving a Tesla that had reportedly been fraudulently purchased in Maryland and later reported stolen.

Both men now face multiple felony charges, including two counts of motor vehicle theft, identity theft, and computer crime offenses.

As vehicle transactions continue to move toward digital channels, lenders and dealerships face growing pressure to strengthen identity verification and fraud detection controls at every stage of the origination process.

The investigation remains ongoing.