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.

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 mechanical defect, specifically 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 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 customer. They must also 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.

The Tesla Model 3 Performance, purchased by Shaun Baker in August 2022 for $104,643, exhibited a steering issue from the day it was collected. Baker noticed that the car would "pull right" while driving, prompting him to return it to Tesla for assessment and service at their Auckland service center. The initial wheel alignment performed did not fix the problem, and subsequent assessments and adjustments also failed to resolve the issue.

In February of this year, a Tesla mobile mechanic confirmed the problem with the vehicle's rear toe alignment. Despite attempts to fix the issue, including seeking a separate assessment from a third-party group, the problem persisted. Baker eventually rejected the vehicle and notified Tesla New Zealand via email.

Tesla New Zealand denied the rejection claims, stating that they found no faults with the vehicle. They suggested that the wheel alignment reports reflected normal variation expected in a regularly driven vehicle. Tesla also mentioned that the steering compensation system, which adjusts the vehicle's steering based on driving style and road conditions, may be responsible for the perceived issue.

However, an independent party conducted a post-hearing test drive and 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. As a result, the tribunal ruled in favor of the customer, requiring Tesla New Zealand to issue a full refund and take back the vehicle.

FutureCar Staff