December 13, 2016 - By Ruchi Gupta · 0 Comments
Tesla Motors Inc. (NASDAQ:TSLA) lawsuit was settled in court, over the improper information provided on Tesla electric vehicles. The main reason behind the lawsuit is that the purchasers of Tesla vehicles, mainly the Tesla S P85D did not have the performance, to which the company stated it did.
The original lawsuit was filed in a Norwegian court. However, the lawsuit was settled, so as to avoid another trial for the tech giant. However, this does not compliment the fact that there were over 130 car-owners dissatisfied with the company’s vehicle models.
The originally promised performance of the Tesla S P85D was, as stated by Tesla, 700 horsepower. However, after customers purchased the vehicle, they were shocked to discover that the maximum power their vehicle had, was a mere 469 horsepower.
However, both sides of the trial settled to a comfortable agreement. In accordance with the agreement, Tesla Motors is liable to pay 65,000 Kroner, which is approximate $7,710. Although, this is indeed only half the original amount requested by the plaintiffs.
In order to compensate for the other half, Tesla has agreed to provide compensation via various forms. Some examples include a voucher, which can be used for a battery upgrade, new wheels, or something similar that falls into this category.
Tesla did state, “As we have pushed the combined motor horsepower higher and higher, the amount of times where the battery chemical is lower than the combined motor horsepower has increased. With the P85D the combined motor shaft power can exceed the electrical horsepower available from the battery.”
Although neither side has commented on the settlement between the tech giant and the plaintiffs, it is clear Norway is one market segment, that Tesla cannot afford to lose. The reason behind this is due to the fact that Norway is the second largest market in the world, available for Tesla.
Tesla has already sold over 2,800 vehicles in Norway since the beginning of the year, which is large for the company. This is, however, 24 percent lower than the peak in 2015, this decrease, is due to the rising competition the tech giant faced in the market of hybrid vehicles. This still means that a Tesla lawsuit could be a big hit to the tech giant.
Tesla stock closed on Monday at $192.43, after rising $0.25 or 0.13%
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By Ruchi Gupta