Tesla Settles Lawsuit With Norwegian Model S Owners

Tesla Motors has settled a lawsuit with customers in Norway who’ve been distressed over the electric carmaker possibly making advertising promises it can’t keep.

Tesla reached an out-of-court settlement with 126 Tesla Model S owners who’ve claimed the company overstated the car’s performance in marketing materials. They’d each purchased a Model S P85D and were prepared to start a trial today claiming that Tesla had overstated the horsepower.

A court spokeswoman said that Olso District Court received a joint letter from lawyers representing these electric car owners, stating that they wanted to withdraw the case.

Kaspar Nygaard Thommessen of Oslo-based law firm Wikborg Rein, who represented car owners, said a settlement was recently reached and the case was closed. Thommessen declined to provide details to Reuters on the settlement.

Norwegian business newspaper Dagens Naeringsliv reported yesterday that the automaker had made an offer to owners, giving them two options to choose from. Owners could receive 65,000 Norwegian crowns ($7,700), which is only half of what they’d originally demanded; or they could choose from a list of equipment options, including car upgrades.

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Tesla had denied making false advertising over the P85D, a higher-priced upgrade for the Model S known for its “insane” speed mode. The company didn’t immediately respond to a Reuters request for comment.

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Norway has been seeing large gains in electric car sales through generous government incentive offerings and commitment to bringing charging stations to roads. Tesla, however, hasn’t benefited from the subsidy program this year, seeing registrations drop 24 percent in the first 11 months of 2016 compared to last year.

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