A Wisconsin Lemon Law attorney filed a lawsuit in Milwaukee County Circuit Court against Tesla Motors when the auto manufacturer refused to provide a refund on a defective vehicle worth over $100,000. This is the first lemon law lawsuit against Tesla Motors.
Tesla representatives declined to comment about the 2013 Tesla SP Sedan bought in March 2013. As a new vehicle, approximately one year old, the warranty was still valid. However, the sedan was defective and left for repairs at the mechanic for over 30 days in order to repair serious issues, such as the inability to start the ignition, power up and charge correctly. In addition, the owner reported that the door handles were faulty and inoperable, as was the defrost function. In total, over the initial five months, the car was getting repaired for 66 days.
The Lemon Law varies from state to state. In Wisconsin, the law requires that auto manufacturers attempt to repair the issue at least four times in a year. If the vehicle cannot be repaired correctly and safely, the auto manufacturer needs to provide a replacement or timely refund. The attorney requested a refund of the money paid in November 2013, yet Tesla Motors initially refused to cooperate and the parties seemed to be at war in a heated legal battle.
Recently, however, the parties were able to reach an agreement and Tesla agreed to repurchase the Tesla and pay for the consumer’s attorneys fees and costs.
Tesla, which uses a direct-sales model is currently battling New Jersey attorneys over a new set of laws to prohibit auto manufactures from selling to consumers directly instead of through a third party dealership. Recently, Tesla Motors has been under investigation by the National Highway Traffic Safety Administration over dangerous battery fires resulting in the agreement to install additional heat shields.