Tesla Scammed with 5 Free Cars, One Set Ablaze on Lake

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【Summary】A man tricked Tesla and got five free electric cars worth over $560,000. He resold three of them and set one on fire to file an insurance claim. He was sentenced to four years in prison and ordered to pay Tesla and the government a total of $493,000.

FutureCar Staff Oct 15, 2023 9:21 AM PT

Tesla Scammed with 5 Free Cars, One Set Ablaze on Lake

A 34-year-old man named Michael Gonzalez 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 (DOJ). Gonzalez pleaded guilty to the charges.

Gonzalez was able to obtain five brand new Tesla EVs worth over $560,000 in total. He later resold three of the cars, including a Model 3 and two Model Xs, for about $231,900 to unsuspecting buyers, such as a used car dealership and individuals on eBay and Craigslist.

In an attempt to resell one of the EVs for which he didn't have a certificate of ownership, Gonzalez allegedly drove it onto a frozen lake, set it on fire, and filed an insurance claim. The claim was denied.

Gonzalez manipulated Tesla's payment system by providing banking information with insufficient funds, including accounts with less than $110. Tesla released the vehicles before realizing that Gonzalez's accounts did not have enough money to cover the full balance. He also used different names, including those of an ex-girlfriend and a woman he fathered a child with, to order the Teslas. Additionally, he submitted false statements to the Vermont Department of Motor Vehicles to obtain the car titles.

After Tesla hired a company to repossess one of the Model Xs, Gonzalez managed to evade the repo men and hide the car in a storage unit.

Gonzalez pleaded guilty to five charges related to possessing and disposing of stolen vehicles. In addition to his prison sentence, he has been ordered to pay Tesla approximately $493,000 and another $231,900 to the government.

It is worth noting that Gonzalez has a history of legal trouble, including allegations of lying on a federal firearms application and aggravated assault with a weapon.

Insider reached out to Tesla, the US Attorney's Office for the District of Vermont, and Gonzalez's lawyer for comment, but did not receive an immediate response.

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