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Tesla refunds customer faulty EV

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【Summary】Tesla New Zealand has been ordered to issue a full refund to a customer who experienced recurring wheel alignment issues with their Tesla Model 3 Performance. The Motor Vehicles Disputes Tribunal ruled that the vehicle did not meet the threshold of "acceptable quality" and therefore Tesla must take back the car, assume the customer's finance obligations, and reimburse the customer's deposit and finance repayments totaling $22,112.82.

FutureCar Staff    Aug 21, 2023 6:20 AM PT
Tesla refunds customer faulty EV

The Tesla Model 3 was once the most popular new EV in New Zealand, but it was overtaken by its Model Y sibling last year.

A Tesla owner based in Waikato has recently won a legal battle with Tesla New Zealand. The Motor Vehicles Disputes Tribunal found that the owner's vehicle had a mechanical defect and ordered Tesla to issue a full refund. The vehicle in question was a new Tesla Model 3 Performance that cost $104,643. Over a period of nine months, the owner had to bring the vehicle in for six wheel alignment assessments, including repairs to the subframe.

Initially, Tesla denied that there were any underlying faults with the vehicle. However, the tribunal adjudicator, Brett Carter, determined that the vehicle did not meet the threshold of "acceptable quality." As a result, Tesla is now required to take back the vehicle, assume the customer's obligations with their finance company, and reimburse the customer's deposit and finance repayments, totaling $22,112.82.

Shaun Baker, the owner of the Tesla Model 3, purchased the vehicle in August 2022 for $104,643. On the day of collection, Baker noticed that the car would tend to "pull right" while driving. He immediately returned the car to Tesla for an assessment and service at their Auckland service centre. The assessors confirmed the issue and performed a wheel alignment to correct it.

However, according to tribunal documents, Baker reported that the problem persisted even after the wheel alignment. In November 2022, he brought the car back to Tesla for another assessment. Tesla staff once again adjusted the wheel alignment, but the problem resurfaced later that month.

Further attempts were made to fix the issue, including a significant repair to the car's front subframe. Despite these efforts, the problem persisted. In February of this year, a Tesla mobile mechanic confirmed the issue with the car's rear toe alignment. Baker then sought a separate assessment from a third-party group, which found that the car drifted to the right even though the steering wheel was level.

Baker rejected the vehicle and sent an email to Tesla New Zealand, but the company denied the claims and stated that no faults were found. The brand suggested that the issues may be related to the vehicle's steering compensation system. However, a post-hearing test drive and an independent vehicle alignment report confirmed that the car still steered to the right on flat road surfaces. The tribunal's assessor also concluded that there was no chronic or abnormal wheel alignment problem with the car.

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