Electric automaker Tesla has agreed to pay US$1.5 million to settle a lawsuit that alleges the company used a software update to reduce the maximum battery voltage for some of its Model S sedans according to a Reuters report.
The software update that was released as far back as 2019, allegedly led to a slower charging speed and diminished range for about 1,743 vehicles according to the plaintiffs’ allegations. With that, the company has now agreed to pay US$625 to each of the affected vehicle owners.
“This amount is many times the prorated value of the temporarily reduced maximum voltage, and thus represents an excellent and efficient result for the Settlement Class,” the court document reads. “In return, the Settlement Class will release claims related to the software updates that imposed and then restored the batteries’ maximum voltage.”
There were investigations conducted by lawyers of the car owners and they found 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. Following that second update, the vehicles’ voltage showed steady restoration over time.”
How the payment will be received is not yet known but a US district court judge will convene a hearing on the proposed settlement on December 9th. There were no comments made by the Tesla spokesperson and the company didn’t in fact have a PR department as it was dissolved back in 2019.
This will be another time whereby Tesla will be forced to pay its customers for throttling their vehicle batteries. The recent being in May when the company was ordered to pay about US$16,000 each to thousands of customers in Norway for slowing down charging speeds.