Tesla's $100,000 EV refund

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.

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, a new Tesla Model 3 Performance costing $104,643, had a recurring wheel alignment issue. Over the course of nine months, the vehicle underwent six wheel alignment assessments, including repairs to the subframe.

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." As a result, Tesla New Zealand is required to issue a full refund to the owner. Additionally, Tesla must 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 tended to "pull right" while driving. He immediately returned the car to Tesla, who conducted an assessment and service at their Auckland service centre. The assessors performed a wheel alignment to correct the issue.

However, according to tribunal documents, Baker reported that the problem persisted, even after the initial wheel alignment. In November 2022, he returned 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 involving an adjustment to the car's front subframe. Tesla believed that this repair had resolved the problem. However, Baker continued to experience the issue, and in February of this year, a Tesla mobile mechanic confirmed that the car's rear toe was outside of specification.

Baker sought a separate assessment from a third-party group, Beaurepairs, who found that the car drifted to the right even with a level steering wheel. This prompted Baker to reject the vehicle and send an email to Tesla New Zealand.

Tesla denied the rejection claims, stating that they found no faults with the vehicle. They suggested that Baker's issues may be related to the vehicle's steering compensation system, which adjusts the steering based on driving style and road conditions.

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

FutureCar Staff