Tesla settles Norway lawsuit over car’s performance
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Electric carmaker Tesla Motors Inc has reached an out-of-court settlement with 126 Norwegian customers who claimed their cars’ performance did not match promises made in the firm’s marketing.
Lawyers for the owners and the company told the Oslo District Court in a joint letter they wanted to withdraw the case which had been due to start on Monday, a court spokeswoman said.
Kaspar Nygaard Thommessen of Oslo-based law firm Wikborg Rein, who represented the car owners, told Reuters a settlement had been reached in recent days and the case had been resolved.
He declined to provide details of the settlement.
Norwegian business newspaper Dagens Naeringsliv (DN) said on Sunday Tesla had agreed to pay 65,000 Norwegian crowns ($7,700) to each car owner, about half of what they demanded, or allow them to choose from alternative options, including car upgrades.
The case involved Tesla’s Model S P85D, which the car owners said had a lower horsepower than stated by Tesla. The company has denied misleading the buyers.
While the Model S PD85 is no longer offered in Norway, similar Tesla Model S cars range from $95,000 for the 90D version to $135,000 for the P100D, according to the company’s Norwegian price website. Most buyers will also pay for add-ons that raise the price further.
Norway is among the world’s top markets for electric cars thanks to generous government subsidies aimed at increasing the electrification of transport.
The registration of new Tesla cars in Norway fell by 24 percent in the first 11 months of 2016 compared with 2015, according to data from lobby group Road Traffic Information Council (OFV).
Questions & Answers
Q.What was the main complaint from the Norwegian customers against Tesla?
What was the main complaint from the Norwegian customers against Tesla?
The customers claimed their Tesla Model S P85D cars had lower horsepower than the company had stated in its marketing. They believed the performance did not match promises made by the firm.
Q.How many customers were involved in the out-of-court settlement with Tesla?
How many customers were involved in the out-of-court settlement with Tesla?
A total of 126 Norwegian customers were involved in the out-of-court settlement. They were represented by the law firm Wikborg Rein in the Oslo District Court case.
Q.What was the approximate value of the settlement offered to each car owner?
What was the approximate value of the settlement offered to each car owner?
Each car owner was reportedly offered 65,000 Norwegian crowns, which is equivalent to about $7,700. They also had the option to choose from alternative benefits, such as car upgrades.
Q.How has Tesla's new car registration in Norway performed recently?
How has Tesla's new car registration in Norway performed recently?
New Tesla car registrations in Norway declined by 24 percent in the first eleven months of 2016 compared to the same period in 2015, according to industry data.
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