Tesla Could Face Penalty In Norway Over Misleading Power Output

Tesla stockBlomst / Pixabay

Tesla may have to give something back to Norwegian customers because of a dispute over the advertised power output of the Model P85D. The issue comes down to the power output of the motors and what the Model S actually delivers, says Electrek. This could come as a big blow to the U.S. firm as Norway is a big market for it, thanks to a massive effort by the government to incentivize sales of electric cars.

Issue revolves around advertised power output

Over a year ago, Norway’s Consumer Council started looking into what now amounts to more than 150 consumer complaints about the power outputs that Tesla advertised for its Model S P85D. According to Electrek, the issue revolves around the way the U.S. firm was listing the power of its motors for the Model S P85D, which has two motors.

When it first introduced the car, the automaker was marketing it as having a combined motor output of 691 hp (224 in the front and 467 in the back). However, the car was never able to achieve those numbers, even when they were the correct outputs of each motor.

Tesla claimed it had made it clear that the numbers were not for the vehicle but for the motors. In addition, Elon Musk’s company underlined that it did not change the actual performance ratings of the Model S P85D but that some car owners still felt cheated. The automaker changed the way it was listing the power output of its cars shortly after the issue arose.

Tesla could appeal the verdict

The Norwegian Consumer Disputes Commission is siding with the owners, formally requesting that the EV maker pay 50,000 Norwegian krones to P85D owners as a “price reduction.” It comes to about US$6,000. Previously, the [Norwegian] Consumer Council resolved the issue in Tesla’s favor with some third-party tests finding that the P85D is even faster than the claimed 0 to 60 mph times, a spokesperson told Electrek.

The confusion is regarding how the power from the motors translates into actual performance. The issue comes down to the interpretation of the performance of the electric car in relation to its value. The car owners think they paid more value for a higher performance they had thought they were getting. The Norwegian government is agreeing with them, at least for now. We could soon see Tesla appeal the decision.

On Wednesday, Tesla shares closed up 4.16% at $210.19. Year to date, the stock is down almost 12%, while in the last year, it is down more than 21%.

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About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com

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