Tesla refunds customer for defective $100,000 electric vehicle

author: FutureCar Staff    

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.

In a recent legal battle, a Tesla owner based in Waikato won against Tesla New Zealand. The Motor Vehicles Disputes Tribunal found that the owner's vehicle had a recurring wheel alignment issue and deemed it mechanically defective. As a result, Tesla New Zealand has been ordered to issue a full refund.

The vehicle in question is a new Tesla Model 3 Performance, which cost $104,643. Over a period of nine months, there were six wheel alignment assessments conducted, including repairs to the car's subframe during one visit.

Initially, Tesla denied that the vehicle had any underlying faults. However, the tribunal adjudicator, Brett Carter, determined that the vehicle did not meet the threshold of "acceptable quality." Consequently, Tesla must take back the vehicle, assume the customer's obligations with their finance company, and reimburse the customer's company for its deposit and finance repayments, totaling $22,112.82.

Shaun Baker, the owner of the Model 3, noticed a steering issue with the car immediately after purchasing it in August 2022. The car would tend to "pull right" while driving. He promptly returned the car to Tesla, who conducted an assessment and service at their Auckland service center. The assessors performed a wheel alignment to address the issue.

However, according to tribunal documents, Baker reported that the problem persisted even after the wheel alignment. In November 2022, he returned to Tesla for another assessment. Tesla staff once again adjusted the wheel alignment, but further issues were discovered.

Despite attempts to fix the problem, Baker continued to face the steering issue. In February of this year, a Tesla mobile mechanic confirmed the problem and attempted another unsuccessful fix. Baker then sought a separate assessment from a third-party group, Beaurepairs, who found that the car drifted to the right even though the steering wheel was level.

Based on this final appraisal, Baker rejected the vehicle and sent an email to Tesla New Zealand. However, Tesla denied the rejection claims and stated that they found no faults with the vehicle. They suggested that Baker's issues may be due to the vehicle's steering compensation system.

After a post-hearing test drive by an independent party and another vehicle alignment report, it was concluded that the car still steered to the right on flat road surfaces. The tribunal's assessor found no evidence of a chronic or abnormal wheel alignment problem.

FutureCar Staff