Tesla Agrees to Pay $1.5 Million Settlement to Model S Owners

Tesla plans to settle claims relating to a software update that temporarily caused reduced battery voltage in a handful of Model S units, according to court documents filed Wednesday in San Francisco’s U.S. District Court.

Reuters reports that Tesla has agreed to pay $1.5 million USD to settle on claims that the company released a software update temporarily reducing the max battery voltage in 1,743 Model S units, as seen in the court filings from Wednesday. The proposed claims, if settled upon in a U.S. court planned for December 9, would effectively pay out $625 to each owner involved in the update.

The lawsuit, which was originally filed in August 2019, alleged that an over-the-air (OTA) update reduced the maximum voltage that certain Model S units could be charged to. While updates following the OTA in question corrected the voltage of the vehicles to some extent, it wasn’t until March 2020 that a new OTA update was released, finally fixing the issue.

Lawyers for the Model S owners said that “voltage limitation was temporary, with a 10% reduction lasting about 3 months, and a smaller 7% reduction lasting another 7 months before the corrective update was released in March 2020.”

Tesla is currently also undergoing two lawsuits in California, one of which alleges that Tesla’s Autopilot was responsible for a fatal accident, and the other a class-action lawsuit claiming that Tesla unfairly raised solar installation prices after contracts had already been signed.

Update July 30, 2021: Elon Musk replied to Sawyer Merritt to say, “if we are wrong, we are wrong. In this case, we were.”