In House - The FindLaw Corporate Counsel Blog

How Tesla Handles Litigation Abroad

Tesla, one of the hottest and most followed companies, is facing yet another international lawsuit. For the second time, the inspired automaker is being sued by customers in Norway that claim the company's P85D was misrepresented and not advertised properly to buyers.

If you think this sounds familiar, well, it is. The lawyer handling the matter pretty much explained that it is the same type of case that settled last year, with a new batch of owners. He further explains that the new batch of owners that filed suit are looking for the same sort of settlement that was reached in the prior case.

The Fast and the Litigious

The initial case in Norway that came before the newly filed one involved the sales claim that the company's car produced over 690 horsepower. Unfortunately, while the statement is true, it is rather misleading because the vehicle has two engines that in combination produce that much horsepower but can't actually work at the same time to deliver that amount of power to the wheels.

The first case settled after a couple years of litigation, and the plaintiffs, a group of almost 132 P85D owners, received their choice of almost $8,000, or vehicle upgrades of that value. In reporting on the settlement, it was noted that Norway is rather fond of Tesla vehicles and there were upwards of 1,200 P85Ds on the road there when the first case settled. Tesla settled the case despite their position that the law required they report the horsepower in the way they did, and that buyers could have clearly read that the dual engines each produce a different amount of power that added up to the nearly 700 advertised horsepower.

Efficient Resolution

Being an electric vehicle manufacturer, Tesla doubtless is interested in efficient resolution of litigation. However, the tough stance they take in the United States against claims that their vehicles suffer from serious problems, doesn't seem to carry-over to claims originating abroad.

When it comes to the legal disputes abroad, the company seems willing to settle wild claims, particularly when the country where the dispute originates is one of the company's new, or target, markets.

Related Resources: