Christina Spicer  |  May 4, 2021

Category: Household

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Consumers Accuse Tesla of Bait-and-Switch in Solar Roof Tiles Class Action

A pair of Pennsylvania residents say that Tesla pulled an old trick, bait-and-switch, when they contracted with the company for its new energy-saving technology – solar roof tiles.  

Lead plaintiffs, Philip Dahlin and Mary Arndtsen filed the class action lawsuit naming Elon Musk’s Palo Alto-based company as a defendant in Pennsylvania federal court Friday. In it, they claim that they entered into what was supposed to be a $46,919 contract for solar roof tiles in September; however, the plaintiffs say Tesla hiked the price to more than $78,000 six months later, blaming a redesign to the system it had to install.  

“Tesla is demanding that Plaintiffs pay more than double for the Solar Roof from what was agreed-upon in the Contract,” alleges the class action lawsuit. “Specifically, Defendant has increased the price of the Solar Roof from $30,139.20 to $61,255.25. Defendant has also increased the price of the Powerwall from $16,000 to $17,000.” 

Dahlin and Arndtsen say that they are not allowed to install regular solar roof panels under their homeowner’s agreement and they became interested in Tesla’s solar roof tiles in 2019 as an environmentally friendly alternative. Tesla’s solar roof tiles are unique because they resemble regular roof tiles, they note in their lawsuit.  

The couple says that they entered into a contract with Tesla for the tiles after an employee visited their home for an estimate. The estimate included the solar roof tiles, along with Tesla’s energy storage system, called the Powerwall.  

The plaintiffs say that in September of 2020 they signed a contract with Tesla and put $100 down as a deposit and refinanced their mortgage to cover the rest of the nearly $47,000 deal. The roof installation was supposed to begin within 180 days of the contract, say the plaintiffs. The plaintiffs allege that they inquired about when their roof would be installed on multiple occasions over the next few months and Tesla blew by the 180-day window provided by its contract.  

Allegedly, Tesla then demanded that the plaintiffs pay more than double to have new and improved solar roof tiles installed. The class action lawsuit contends that the plaintiffs are not the only consumers burned by Telsa’s bait-and-switch, citing several reports and statements by Elon Musk about the redesign and price increases.  

The plaintiffs seek to represent other Pennsylvania consumers who were allegedly duped by Tesla’s bait-and-switch solar roof tiles contract. They accuse Tesla of violating state consumer protection laws and want the court to assess damages on behalf of Class Members.  

Are you thinking about Tesla solar roof tiles? Are you concerned about the bait-and-switch allegations against the company? Tell us about it in the comment section below! 

The lead plaintiffs are represented by Peter Muhic of LeVan Muhic Stapleton and Gary Lynch and Edwin J. Kilpela, Jr of Carlson Lynch, LLP.  

The Tesla Solar Roof Tiles Class Action Lawsuit is Dahlin, et al. v. Telsa, Inc, Case No. 2:21-cv-02020 in the U.S. District Court for the Eastern District of Pennsylvania.  

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14 thoughts onConsumers Accuse Tesla of Bait-and-Switch in Solar Roof Tiles Class Action

  1. Ali S says:

    Same thing happened to me. Contract signed in November 2020 for 71k, the new adjusted price is 153k. This is insane.

  2. Ed Malloy says:

    We placed deposits and executed contracts for both automobile and solar roof. Tesla has not only delayed delivery of both, they’ve significantly increased the price on both while we wait for delivery. They also promised verbally that they would NOT increase the price of the vehicle when we agreed to wait another 3 months. We had other suppliers, manufacturers from which to choose but we relied on their express and implied statements of delivery at agreed prices. And frankly their claim that the sentence in the agreement allowing them to change the price or product is weak or non-binding, particularly when they make an express promise to deliver without increased prices, verbally or otherwise, and only further illustrates TESLA has been acting in bad faith from the beginning with consumers. Sorry but that’s what FTC 93A is all about – Unfair and/or Deceptive practices.

  3. Jason says:

    not only did they raise my cost, but they didnt caulk the holes in my roof they drilled, allowing rain to soak my drywall and black mold to grow in my office. PLEASE add me to this list

  4. A. Valentin says:

    Same situation here! when from 28k to 38k just weeks from installation, How can I join the law suit?

  5. Jose Suarez says:

    I still signed a contract for $21,000 and now Tesla has increased it to
    $34,000. That’s deceptive practice and a breach of contract. I’d like to sue that company

  6. Mayur says:

    I had similar story signed up 10.2020 and in permitting stage. Went up from 69k by about 30 k. Then they offered a free power wall. So its now its 89k. This tipped it over the edge of not worth it compared to panel.

  7. jaron ross says:

    i would like to join this suit. price increased from 86k to 149k. where to join or contact?

  8. Gary Kristensen says:

    Here is the email that I sent to my Solar Roof Advisor about the recent price increase #TeslaRoofBaitAndSwitch:
    Jonathan,

    Thank you for the email. I totally understand it’s not your fault and you cannot do anything about the price of my solar roof being increased 63% (from $63,444.35 to $100,177.51), but it absolutely is bait and switch no matter what definition I read. I hope you’re able to share my email with your superiors. Tesla needs to know how their corporate decisions harm real people, ones who are important to your company.

    I have been sharing my story online anywhere I can find. Tesla roof 63% price increase after the roof should have already been done without any justification other than a “changed pricing structure” feels like the woman you love not showing up for the wedding because she wanted to marry someone with more money. A roof that once made financial sense over its life, no longer does. Will Tesla jack the price on a Cybertruck that I will have waited two years for? It is simply Tesla putting profits ahead of honoring its engagements and it is shortsighted business practice that only works when there is no competition. Watch out, it could be profits before employees next and there is plenty of competition on the way.

    I do not plan to purchase conventional solar, so the improvements I made to my home are not going to be helpful. I have no receipts for the chimneys removed because the holes are still there waiting to be patched for when my Tesla roof goes on. The solar roof is something that I have been planning for nearly two years including converting to electric heat and water heat, investment opportunities missed, loans taken, and that cannot be made right simply by refunding $100. If my small business can honor contracts, Tesla can too. I’m feeling ashamed to have been such a raving fan of the company and sick about what to do next. Can I separate the Tesla roof company from the Tesla car company? Can I still be a shareholder with shortsighted management? Do I still want to drive my Model X proudly? I do not know the answers yet. I’m hopeful that someone high up realizes that harming on your fans is a bad idea and reverses course.

    Sincerely,
    Gary Kristensen

  9. Jaime V says:

    Ordered a roof in the beginning of the year, inspection, permits were ready to go then I got an email stating my price would go up. I called my solar roof advisor that I have been working with and left voice mails and emails and not one call back. I was redirected with someone from their solar roof department and they told me nothing could be done, mind you I had a contract and loan signed and approved months ago, I got hit with a 20k price increase for no reason at all, the advisor just stated, it was upper managements decision and you either take the new revised price Or simply cancel.

    Not happy at all.

  10. Pablo Perez says:

    I signed up in July 2020 and in April 2021, I finally got my design document with a 78% increase in cost. I’m now determining if I will cancel.

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