Tesla Owners File Lawsuit Over Battery Throttling Allegedly Caused By Software Update

Tesla has been hit by a class-action lawsuit in California, USA, from a group of owners who are reportedly facing issues after a software update. The software update is said to have affected the performance of the batteries in some older Tesla Model S & Model X EVs, causing range to drop by up to 20 per cent, or even causing total battery failures, pushing customers to purchase new batteries for $15,000 (around Rs. 12.5 lakh).

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The owners who are a part of the class-action lawsuit claim the results of Tesla’s updates are in violation of state and federal laws. The lawsuit argues that Tesla vehicles are “protected computers” under the Computer Fraud & Abuse Act, and the said software updates violate consumers’ rights. It also claims that the updates violate the California Unfair Competition Law and the Consumer Legal Remedies Act. “Tesla owners and lessors are uniquely at the mercy of the maker of their cars, and Tesla imposes software updates without consent whenever their vehicle is connected to Wi-Fi,” said Steve Berman, an attorney with Hagens Berman representing Tesla owners and lessors in the lawsuit, as per a Reuters report.

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Lawyers also added that automakers usually notify their customers when they want to update the software in the vehicles, but Tesla can update the software automatically once the vehicle is connected to the internet. The lawsuit also states that some Tesla owners have paid third parties $500-$750 to reverse the software updates that reduced the range of their vehicles. The attorneys also said that Tesla denied reimbursement to the owners who faced reduced battery capacity.

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This is not the first time Tesla has faced a lawsuit over battery throttling issues. Tesla agreed to pay $1.9 million back in July 2021 to settle claims that a software update had temporarily reduced maximum battery voltage in 1,743 Model S sedans. Owners of the vehicles received $625 each, which, according to the court, was “many times the prorated value of the temporarily reduced maximum voltage.” About $400,000 was charged as attorney fees for the suit.

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