Tesla Owners Could Get $625 Payout Each From $1.5 Million Model S Settlement
Image via Tesla
Tesla owners could receive US$625 each as part of a settlement agreement over an update to the Model S electric cars in May 2019, which drivers said reduced the car’s battery charging speed, maximum capacity, and temporarily affected its range.
According to documents cited by Reuters that were filed with a US District Court in San Francisco, the proposed agreement would be for Tesla to fork out US$1.5 million in order to pay drivers for the reduced vehicle performance they experienced. It will also cover the plaintiff’s attorney fees and costs.
The update had been rolled out in response to a Model S vehicle catching fire in Hong Kong. However, though the software was said to “help further protect the battery and improve battery longevity,” many drivers saw their battery’s performance declining instead.
In March last year, the electric vehicle firm did try to remedy the situation plaguing over 1,700 drivers, per the filing. A new software update restored impacted cars’ batteries to the maximum voltage over time. Of the affected sedans, over 1,500 have already been fully restored, with 57 drivers receiving full battery replacements instead.
As part of the settlement, the firm said it would “maintain diagnostic software for in-warranty vehicles to notify owners and lessees of vehicles that Tesla determines may need battery service or repair for certain battery issues” as well.
A final hearing is slated to take place on December 9, 2021.
[via CNBC, cover image via Tesla]
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