Tesla agreed to pay $ 1.5 million to settle the lawsuit, claiming the company used a software update to lower the maximum voltage on some Model S sedans. Reuters reports.
A software update released in 2019 resulted in slower download speeds and lower range for approximately 1,743 vehicles, the plaintiffs claimed. As a result of the settlement, Tesla agreed to pay $ 625 to each vehicle owner involved.
“This amount is a multiple of the relative value of the temporarily reduced maximum voltage and thus represents an excellent and efficient result for the solution class,” the court document reads. “In return, the clearance class releases the requirements associated with software upgrades that set and restored the maximum voltage of the batteries.”
Owners’ lawyers said they conducted a study that “the voltage limit was temporary, a 10 percent discount will take about 3 months, and a smaller 7 percent discount will last another 7 months before the corrective update is released in March 2020. After that, the second update restored vehicle voltage steadily over time.”
It is not immediately clear how the plaintiffs will receive their payments from Tesla. A U.S. district court judge will convene a hearing on the proposed settlement on Dec. 9. The spokesman did not respond to the request for comment; Tesla dismantled its PR department in 2019.
This is not the first time Tesla has been forced to pay its customers for strangling car batteries. Last May the company was ordered to pay SEK 136,000 ($ 16,000) to thousands of customers in Norway for slowing down download speeds.