$6M Tesla solar roof pricing settlement receives approval

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Update:

• A California federal judge approved a $6.08 million Tesla settlement after an objector backed down.
• The settlement resolves claims the company deceptively raised solar roof tile prices.
•  U.S. District Judge Vince Chhabria approved the settlement, which includes 8,622 class members, according to court documents.
• The objector backed down after learning she’ll receive $17,000 in the settlement.

Tesla bait-and-switch solar systems class action lawsuit overview: 

• Who: Matthew Amans and Babak Malek filed a class action lawsuit against Tesla. 
• Why: Tesla, which has filed a motion to dismiss the claims, is being accused of using a bait-and-switch scheme to hike the price of its solar systems for customers who have already signed a contract. 
• Where: The class action lawsuit was filed in California federal court. 

(July 18, 2022)

Tesla is fighting back against class action claims it has been unfairly increasing the price of its solar roof tile system. 

The federal judge in California overseeing the complaint suggested he would deny Tesla’s motion to dismiss the claims; however, he said the allegations against the company were “pretty sparse,” Law360 reports. 

Plaintiffs Matthew Amans and Babak Malek claimed in May of last year that Tesla overcharged its solar roof tile system customers by running a “bait-and-switch” scheme that kicked in once the purchase was completed. 

Amens and Malek filed an amended complaint against Tesla in February, arguing that the company’s alleged price hikes effectively changed the purchase agreement retroactively, according to Law360. 

Tesla, Amens and Malek argue, is deceiving its customers through the way it markets and sells its solar roof tile systems and ultimately holding them “hostage” with price hikes and delays that they say are “unjustified” and “unlawful.” 

Amens and Malek claim Tesla advised its customers in April of last year that it would not honor their contracts unless they agreed to the price increases, Law360 reports. 

Tesla claims initial contract offer is ‘estimated contract price’

Tesla, in its motion to dismiss, argues the price it initially offers its customers is simply an “estimated contract price,” which it says makes clear the actual cost can be higher, depending on how the installation goes. 

The company did acknowledge it notified some of its customers in April 2021 of a price increase. However, it claims it gave them a choice to be able to cancel their contracts, in addition to offering a deposit refund, Law360 reports.

The judge overseeing the complaint said that, in the event he chooses to dismiss the complaint, the plaintiffs will be given another opportunity to amend it. 

A similar class action lawsuit was filed against Tesla in May of last year over claims the company uses a bait-and-switch scheme to increase the price on its solar roof tile system customers. 

Have you signed a contract with Tesla for its solar roof tile systems? Let us know in the comments. 

The plaintiffs are represented by Eve-Lynn J. Rapp and John Aaron Lawson of Edelson PC and Justin T. Berger of Cotchett Pitre & McCarthy LLP.

The Tesla bait-and-switch solar systems class action lawsuit is Amans, et al. v. Tesla Inc., Case No. 3:21-cv-03577, in the U.S. District Court for the Northern District of California.

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