Electric car maker settles with Norwegian Tesla owners over "misleading" power output

Tesla may be leading the way in advancing electrification and autonomous driving technology, but as braggadocios as the company has gotten in the eyes of a lot of people, it’s not immune to getting a dose of humble pie every once in a awhile. That’s what happened after the electric carmaker reached an out-of-court settlement with 126 Norwegian customers who filed a lawsuit against the company over misleading power outputs attributed to the Tesla Model S.

For those who don’t remember, 126 owners of the Model S in Norway took issue with Tesla’s claims that the Model S P85D delivers a total of 691 horsepower, 467 horses of which is delivered from its rear motor and another 224 ponies coming from its front motor, bringing the total to a “combined” 691 horsepower. Apparently, those Norwegian owners took Tesla up to task for what they asserted as false claims of the total power of the car as they were led to believe that the combined output to 691 ponies could be delivered by the Model S when the truth is it can’t deliver on the promise.

In any event, the case was due to start in court yesterday, until lawyers from both sides told the Oslo District Court in a joint letter that they had decided to withdraw the case after striking a settlement deal. The case, according to Reuters, has since been resolved after Tesla agreed to pay each car owner of the Model S P85D 65,000 Norwegian crowns, or around $7,700 based on current exchange rates.

The settled amount is around half of what each Model S P85D owner was seeking, but it’s still a little more than the $6,000 that the country’s Consumer Disputes Commission asked Tesla to pay to the aggravated owners back in July 2016.

With the case now settled, both sides are likely hoping that the worst is over and Norway can return to being one of the biggest European markets of Tesla. The country has always been one of the world’s top markets for electric cars, but data culled by lobby group Road Traffic Information Council (OFV) indicated that registration of new Tesla cars in Norway dropped by 24 percent in the first 11 months of 2016 compared to the same time period a year ago.

Continue after the jump to read the full story.

All’s well that ends well for Tesla and those disgruntled Model S P85D owners

It’s hard to believe since the case is so far away from us, but this issue between Tesla and Norwegian owners of the Model S P85D has actually been going on for quite some time now. Good for both sides then that they finally came to an amicable settlement that everyone’s on board with. Specific details about the settlement were not disclosed to the public, but at this point, it doesn’t really matter what those details are, just as long as it’s resolved and things can go back to normal for both parties.

It’s especially crucial for Tesla to get this case resolved because of how important Norway is among its European markets. The country’s status as one of the top markets for electric cars is completely legitimate because the government has made a point to grant generous subsidies to its citizens to buy electric cars as part of an push to increase the volume of electric cars out on the road. It’s not just subsidies either; the Norwegian government has even thrown in a few perks along the way, including giving free parking to electric car owners, as well as free tolls and the use of bus lanes.

Clearly, the Norwegian market is not very big relative to other countries, but it is a very important one for Tesla, and the sooner it can resolve any legal issues it has over there, the better off it’s going to be. All’s well that ends well, right, even if you have to take a swallow a bitter pill in the process.

Read our full review on the 2017 Tesla Model S here.

Source: Reuters

Kirby Garlitos
Automotive Aftermarket Expert - kirby@topspeed.com
Kirby’s first exposure into the world of automobiles happened when he caught Knight Rider on television as a five-year old boy. David Hasselhoff didn’t leave much of an impression on him (that happened later on in Baywatch), but KITT certainly did. To this day, Kirby remains convinced that he will one day own a car with the same ‘spirit’ as the original KITT (not the 2008 monstrosity). He doesn't know when that will be, but until then, he’s committed to expressing his love for KITT, and all cars for that matter, here at TopSpeed.  Read More
About the author
What do you think?
Show Comments
Car Finder: