Legally reviewed by: Jessica Anvar Stotz, JD, MBA
Tesla has recently been under scrutiny for allegedly misrepresenting the range their vehicles are capable of. One of the biggest developments currently taking place in the world of electric vehicles is the increasing of range, meaning the distance the car can travel without needing to recharge.
Tesla advertises certain ranges for their vehicles, and their vehicles tend to get more expensive the higher the range. This means that customers may be paying more for vehicles that allegedly falsely report to have a greater range than they actually do.
A class action lawsuit was filed on behalf of Tesla consumers who believe their car’s range was inaccurately reported to them. This lawsuit was dismissed by a federal judge on the basis that the consumers had signed a mandatory arbitration agreement when they purchased their Tesla vehicles.
Mandatory arbitration agreements force parties into a process called arbitration instead of filing a lawsuit in court against the manufacturer. Now, attorneys are looking into bringing a different type of claim to the manufacturer called “mass arbitration.” However, joining this mass arbitration claim may not be the best idea for consumers seeking to maximize compensation. Continue reading to find out why.
Which Tesla Owners Can Participate?
Anyone who has purchased or leased a Tesla and believes it to falsely represent its range, either when it was purchased or through day-to-day use in the car’s own software, is eligible to join the mass arbitration. This issue does not apply to any particular Tesla model, but rather seems to be more of a company-wide issue regarding advertising and reality.
3 Steps to Sign Up for Tesla Mass Arbitration
Signing up for the Tesla mass arbitration is a straightforward process that any consumer can take part in if they desire to do so.
- The first step is to determine whether or not your Tesla is one of the affected vehicles. If it appears to have less range than advertised, your Tesla might be affected.
- The next step is to fill out this form. The form will request some simple information, including what model of Tesla you have, when you purchased it, and some questions about the range of your vehicle and if you believe it was falsely advertised to you.
- After you have filled out the form, the best thing to do is stay up to date on information regarding the mass arbitration proceedings. This will ensure you do not miss anything about the process and will keep you in the loop as things continue to develop over time.
Pros and Cons of Mass Arbitration
There are several pros and cons Tesla owners should be aware of before making the choice to enter into mass arbitration. Many of the advantages and disadvantages of mass arbitration are shared by class action lawsuits and can be found below.
Pros
Mass arbitration may be quicker than individual litigation, if the manufacturer chooses to settle a large number of cases all at once. In arbitration, parties can also agree on who will make decisions during the process and which guidelines will be used. In this particular case, consumers may have already made this decision when purchasing their vehicle (whether or not they are aware of it).
Cons
Unlike a class action lawsuit, mass arbitration still requires individuals to manage their arbitration individually. This means that consumers looking for a more hands-off approach to handling their claim may not find this in mass arbitration.
Additionally, because every consumer files their own arbitration claim, they may all come to different outcomes, as opposed to a class action where the same outcome is applied to all members. Also, because each consumer files their own claim, legal costs can be more significant than in a class action lawsuit where the costs are split between all members.
Tesla Mass Arbitration Participant Deadline
Classaction.org, which manages class action lawsuits and mass arbitration cases, has not yet announced a deadline for signing up for mass arbitration for these Teslas as of June 3rd, 2024. As mentioned before, staying up to date on the development of this situation is vital to make sure consumers don’t miss deadlines.
The Benefits of Pursuing an Individual Lemon Law Claim Instead
As an alternative to joining mass arbitration, a consumer who owns a defective Tesla can bring an individual lemon law claim against the manufacturer. Misrepresentation of the maximum possible range of a Tesla is something that could substantially impair the value or function of the vehicle, which could make it eligible to be a lemon.
Lemon law claims are individual claims brought by consumers, often with the assistance of a lemon law attorney. Lemon law claims, if successfully brought, provide a remedy for consumers in the form of either a repurchase of the defective vehicle or a replacement of it.
A repurchase involves the consumer receiving a refund of all payment they have made on the vehicle, including interest, taxes, and fees like registration renewals. In the case of a replacement, the consumer receives a replacement vehicle of similar make and model. In the case of a Tesla, since theoretically all Teslas are suffering from this range advertisement issue, a refund is potentially more likely.
Finally, if you bring a lemon law claim and prevail, California law states that your attorney’s fees and costs will be paid for by the manufacturer. This makes pursuing a claim less financially burdensome on the consumer and helps encourage them to bring claims they believe are legitimate.
Call the Experts for Tesla Lemon Law Assistance!
If you decide that bringing a lemon law claim is a more effective option for resolving your Tesla range issue, look no further than the Lemon Law Experts! We have an exceptional track record in representing our clients for lemon claims, including Teslas, and have secured millions of dollars in favorable settlements for our clients.
If you are not sure if bringing a lemon law claim would be the best option for you, don’t hesitate to reach out! We will provide a free case evaluation for you to consider your options in pursuing a claim. Contact us today by calling (877) 885-5366 or by filling out our online form!
