Tesla owners could get $ 625 each in liquidation for battery limitation

The Tesla Model S P100D

Mack Hogan | CNBC

Some Tesla owners could get $ 625 each to settle claims that a wireless upgrade, shipped to their Model S electric sedans in May 2019, temporarily reduced the charging speed, maximum capacity and range of the battery.

According to documents filed in a U.S. District Court in San Francisco, and obtained by CNBC, the proposed settlement would see Tesla pay $ 1.5 million into a fund that would pay owners for the reduced vehicle performance they experienced. due to battery acceleration, and would cover the plaintiffs ‘attorneys’ fees and costs.

Reuters first reported on the new filings in the class action lawsuit, David Rasmussen v. Tesla Inc.

According to filings, 1,743 Tesla Model S owners were affected by the software update.

In May 2019, Tesla was facing negative publicity after one of its Model S vehicles caught fire in Hong Kong. Tesla issued a statement at the time, saying:

“As a precaution, we are reviewing the thermal and charge management settings on Model S and Model X vehicles through a wireless software update that begins rolling out today, to help further protect the battery and improve battery longevity. Battery. “

A Model S owner who had been carefully monitoring its battery performance over time, David Rasmussen, complained to the court in August 2019 after that software update.

By October 2019, Tesla and the owners moved to try to reach a settlement and the attorneys suspended the litigation. Tesla released another software update in March 2020 to restore affected owners’ batteries to their maximum voltage over time while driving their Teslas.

Court filings this week say 1,552 of the affected Tesla Model S sedans have already seen their battery voltage fully restored, and 57 received full battery replacements. Other Tesla owners who experienced battery strangulation should see their Model S’s full voltage restored as they continue to drive the cars.

As part of the proposed settlement, Tesla would also have to “maintain diagnostic software for vehicles under warranty to notify owners and lessees of vehicles that Tesla determines may need battery service or repair for certain battery problems.” .

Class owners include US residents who owned or rented a Tesla Model S who were experiencing battery limitations due to Tesla’s wireless update in May 2019. A hearing to finalize the proposed deal is scheduled for 9 December 2021.

The owners of Tesla were represented by Lieff Cabraser Heimann & Bernstein, along with Ed Chen’s YK Law. Attorneys’ fees amount to approximately 25% of the settlement funds. They have proposed that Angeion Group act as administrator of the settlement.

Tesla did not respond to a request for comment.

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