Tesla's $100,000 EV refund due to technical issues

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 won a legal battle with Tesla New Zealand after hearings in April and May. The Motor Vehicles Disputes Tribunal found the owner's vehicle to be mechanically defective and ordered Tesla to issue a full refund.

The vehicle in question was a new Tesla Model 3 Performance that cost $104,643. It had a recurring wheel alignment issue, which required six assessments and repairs within nine months, including repairs to the car's subframe.

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

Shaun Baker, the owner of the Model 3, purchased the Tesla in August 2022 for $104,643. On the day he collected the car, Baker noticed that it would tend to "pull right" while driving.

He immediately returned the car to Tesla, who booked it in for an assessment and service at their Auckland service centre. The assessors confirmed that the car indeed pulled to the right and performed a wheel alignment to fix the issue.

However, according to tribunal documents, Baker reported that the problem persisted. 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. Baker had to take the car back to Tesla, where they noted that further improvements were needed, even though the measurements were within specification.

To address the issue, Tesla made a more significant repair by adjusting the car's front subframe. They believed this fixed the problem.

Despite the repair, Baker continued to face the same issue. In February of this year, a Tesla mobile mechanic confirmed the problem and attempted another unsuccessful fix. Baker then took the car to a third-party group for a separate assessment, which revealed that the car still drifted to the right, even with a level steering wheel.

Baker rejected the vehicle by sending an email to Tesla New Zealand, but the brand denied the claims, stating that they found no faults with the vehicle. Tesla suggested that the wheel alignment reports reflected normal variation expected in a regularly driven vehicle. They also mentioned that the issues might be related to the vehicle's steering compensation system.

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 found no evidence of a chronic or abnormal wheel alignment problem.

FutureCar Staff