Some Tesla owners could get $625 each to settle claims that an over-the-air update, pushed to their Model S electric sedans in May 2019, reduced their battery’s charging speed, maximum capacity and range temporarily.
According to documents filed with a U.S. District Court in San Francisco, and obtained by CNBC, the proposed settlement would have Tesla paying $1.5 million into a fund that would pay owners for the reduced vehicle performance they experienced due to battery throttling, and would cover the plaintiffs’ attorney fees and costs.
In May 2019, Tesla was facing negative publicity after one of its Model S vehicles caught fire in Hong Kong. Tesla issued a statement at the time, saying:
“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.” A Model S owner who had been carefully tracking his battery’s performance over time, David Rasmussen, complained to the court in August 2019 after that software update.