Tesla Class Action Alleges Defective Batteries

A recent Tesla class action claims that the auto company equips their Model S and X vehicles with defective batteries and misleading software updates.

Recently, a Tesla Model S in Hong Kong reportedly caught fire after the batteries in the vehicle ignited.

In response to the incident, Tesla allegedly assured consumers that their batteries are “engineer[ed] with a state-of-the-art design” that ensures that, in the “very rare” instance of a fire, the fire would spread slowly and heat would be vented away from the cabin. The design reportedly ensures that occupants can leave the vehicle without getting hurt by the fire.

“The safety of our customers is our top priority, and if we do identify an issue, we will do whatever is necessary to address it,” Tesla said in a statement.

“As we continue our investigation of the root cause, out of an abundance of caution, we are revising charge and thermal management settings on Model S and Model X vehicles via an over-the-air software update that will begin rolling out today, to help further protect the battery and improve battery longevity.”

Although the company is reportedly investigating the issue, Tesla has allegedly failed to inform consumers of the consequences of these updates. The software updates allegedly manipulate the power output of their vehicles, limiting the total number of usable kilowatt hours.

The recent Tesla class action lawsuit, filed by plaintiff David Rasmussen, claims that the software updates result in reduced range capabilities, longer battery charging times, and an overall decrease in value of Model S and X Tesla vehicles. Rasmussen allegedly experienced this when the performance of his Model S suddenly dropped off after the software was updated.

Rasmussen’s Tesla class action argues that the software updates cannot be excused simply because they were concerned about the safety of vehicles.

“If this were true, Tesla could have informed owners of the Class Vehicles whether their car was at a higher risk of catching on fire and could have offered to replace the batteries for the Class Vehicles,” the Tesla class action claims.

“Instead, Tesla has, and continues to, deny the fact that the software updates in question have caused significant harm and damage to customers.”

Rasmussen argues that Tesla has misrepresented its updates to consumers and unlawfully expects consumers to foot the bill for battery replacements, despite the company equipping their vehicles with defective batteries.

The Tesla class action also argues that the company’s top priority is not their customers’ safety but is actually “itself and its intent to avoid providing warranty battery replacements to rightful customers.”

Rasmussen’s Tesla class action states that the auto company cannot be allowed to continue with its “greed and fraudulent intent” that harm consumers. Instead, he calls for the court to hold Tesla accountable for its actions.

In the Tesla class action, Rasmussen seeks to represent a Class of consumers who purchased a Tesla Model S or Model X. He also seeks to represent a Class of consumers who purchased a Tesla Model S or Model X and whose vehicles were limited by Tesla’s software updates, resulting in a reduction of range.

If the court determines that Rasmussen is unable to represent these nationwide Classes, he instead seeks to represent the exact same consumers in two California Classes.

The Tesla class action seeks injunctive relief, equitable relief (vehicle buyback or battery replacements), punitive damages, exemplary damages, penalties, disgorgement, restitution, court costs, and attorneys’ fees.

Rasmussen and the proposed Class are represented by Edward C. Chen of the Law Offices of Edward C. Chen.

The Tesla Defective Batteries Class Action Lawsuit is Rasmussen v. Tesla Inc. d/b/a Tesla Motors Inc., Case No. 5:19-cv-04596, in the U.S. District Court for the Northern District of California.

Read More Lawsuit & Settlement News:

Tesla Class Action Says Pre-Owned Warranties Aren’t Honored

Essure Device: Construction and Materials Blamed for Complications

Tesla Reaches Enhanced Autopilot Feature Class Action Settlement

Can You Remove Hernia Mesh Safely?