perhaps RTFA, Tesla provided documentation that said the car had actually been involved in a collision.

SO they lied, incompetently tried to cover it up, handed over evidence that proved their opponents case, were found to be at fault, appealed the result, which was upheld. Now they want to sue this guy for, what seems to be, winning his case.

So yes, this is the streisand effect in effect.

Their own documentation (provided in the initial sales fraud case) showed the damages.

The courts have already made a determination on this. Tesla themselves admitted in court that the car was accident damaged.