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Tesla Scammed: Man Receives 5 Free Cars, Torches One on Lake

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【Summary】A man tricked Tesla into giving him five free cars worth over $560,000. He resold three of them and set one on fire when he couldn't sell it. He was sentenced to four years in prison and ordered to pay Tesla $493,000.

FutureCar Staff    Oct 14, 2023 6:23 AM PT
Tesla Scammed: Man Receives 5 Free Cars, Torches One on Lake

A man named Michael Gonzalez, aged 34, has been sentenced to four years in prison for tricking Tesla into giving him five electric vehicles without full payment, according to the US Department of Justice. Prosecutors stated that Gonzalez resold a Model 3 and two Model Xs for approximately $231,900. He pleaded guilty and received his sentence on Thursday.

Gonzalez managed to obtain five brand new EVs from Tesla, worth a total of over $560,000, and later sold three of them at prices below their sticker value to unsuspecting buyers, including a used car dealership and individuals on eBay and Craigslist. The vehicles involved were a 2018 Model 3 and four Model X EVs, as per court records.

In an attempt to resell one of the EVs that he didn't have a certificate of ownership for, Gonzalez allegedly drove it onto a frozen lake, set it on fire, and filed an insurance claim, stating that he had taken the vehicle ice fishing at night on Shelburne Bay in Vermont. However, the claim was denied.

Gonzalez manipulated Tesla's payment system by providing banking information from accounts with insufficient funds, some of which had less than $110. Tesla gave him the cars before realizing that his accounts did not have the necessary funds to cover the full balance. The indictment revealed that Gonzalez used different names, including those of an ex-girlfriend and a woman with whom he had a child, to order the Teslas. Additionally, he submitted false statements to the Vermont Department of Motor Vehicles to obtain the titles to the cars.

After Tesla attempted to repossess one of the Model Xs, Gonzalez managed to evade the repo men and hide the car in a storage unit. He later pleaded guilty to five charges related to possessing and disposing of stolen vehicles. In addition to his prison sentence, Gonzalez has been ordered to pay Tesla approximately $493,000 and an additional $231,900 to the government.

Gonzalez has had previous legal issues, including allegations of lying on a federal firearms application and aggravated assault with a weapon. Tesla, the US Attorney's Office for the District of Vermont, and Gonzalez's lawyer did not provide immediate comments on the case.

Gonzalez's lawyer stated that he took full responsibility for his actions.

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