The Tesla Model S P100D
Mack Hogan | CNBC
Some Tesla owners could get $ 625 each to settle claims that an over-the-air update carried over to their Model S electric sedans in May 2019 temporarily reduced their battery’s charging speed, maximum capacity, and range Has.
According to documents filed in a U.S. District Court in San Francisco and received by CNBC, Tesla would put $ 1.5 million in the proposed settlement into a fund that would pay owners for decreased vehicle performance due to battery throttling, and would pay the plaintiff’s attorney fees and expenses.
Reuters first reported on the new filings in the David Rasmussen class action lawsuit against Tesla Inc.
According to the documents, 1,743 Tesla Model S owners were affected by the software update.
Read more about electric vehicles from CNBC Pro
In May 2019, Tesla faced negative advertising after one of its Model S vehicles caught fire in Hong Kong. Tesla issued a statement at the time that said:
“As a precaution, we are revising the charging and thermal management settings on the Model S and Model X via an over-the-air software update that will be introduced today to further protect the battery and improve battery life. “
A Model S owner who had carefully tracked his battery’s performance over time, David Rasmussen, complained to the court in August 2019 following this software update.
By October 2019, Tesla and the owners tried to reach a settlement agreement and the lawyers put the lawsuit on hold. Tesla rolled out another software update in March 2020 to restore affected owners’ batteries to their maximum voltage over time while they were driving their Teslas.
This week’s court records stated that 1,552 of the affected Tesla Model S sedans have already had their battery voltage fully restored and 57 have received full battery replacements. Other Tesla owners who have experienced battery throttling should see their Model S restored to maximum voltage if they continue to drive the cars.
As part of the proposed deal, Tesla would also need to “maintain warranty vehicle diagnostic software to notify owners and lessees of vehicles that Tesla determines that they need battery service or repair with certain battery problems.”
Owners in the class include U.S. residents who owned or leased a Tesla Model S who experienced battery limitations due to Tesla’s over-the-air update in May 2019. A hearing to finalize the proposed settlement is scheduled for December 9, 2021.
Tesla owners were represented by Lieff Cabraser Heimann & Bernstein and Ed Chen’s YK Law. The legal fees amount to around 25% of the settlement amount. You have suggested that Angeion Group act as the liquidation administrator.
Tesla did not respond to a request for comment.