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Tesla Motors (TSLA)’s Model S P85D Isn’t Insane Enough – Owners Revolt

Tesla Inc (TSLA)

Tesla Motors Inc is facing some problems from customers in Norway. The customers of the electric carmaker in Norway are seeking money back from the automaker, saying that their P85D models marketed with an “insane mode” of acceleration did not go fast enough, as per Bloomberg. The electric car making giant has rejected the claims.

What are the complaints?

Kaspar N. Thommessen – an attorney at Wikborg Rein law firm representing the plaintiffs – said some 126 owners of the Tesla Model S sedan’s P85D performance version want “unspecified reimbursements” after their Model S reached only 469 horsepower instead of 700 Horsepower pledged by the automaker. On Wednesday, in an emailed response to Bloomberg, the lawyer said the car has low horsepower, added that according to the consumers, it affects the performance of the car.

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A customer told Dagens Næringsliv – a Norwegian newspaper – that the advertised Horsepower of the car is 700, and its acceleration claims of 0 to 60 mph in roughly 3.3 seconds were complete crap. The Consumer Reports noted in 2015 that it took 3.5 seconds.

Tesla rejects all claims

Even Sandvold Roland – a Tesla Motors Inc spokesman – said according to the measurement method required by the authorities, the electric car meets requirements. The Oslo District Court said it has slated hearings in the case for mid-December.

The tests and independent checks done by Tesla itself showed that the P85D can accelerate from 0 to 100 kilometers per hour in 3.1 to 3.3 seconds. In an email, Roland said “that indicates the performance figures have always been accurate.”

A similar case earlier

Well, it is not really surprising that at least a few owners are quibbling over the performance of the car, given the upwards of $100,000. This adds to the long list of issues that Tesla is facing presently like safety concerns over Autopilot, SolarCity deal, cash crunch, rising competition, accelerating production, completing Gigafactory, etc. Also, recently, the automaker and supplier Mobileye got into a fight publicly over safety concerns.

In a similar case in June, the Consumer Disputes Commission of Norway ruled that five P85D buyers, who complained of not enough acceleration, should be reimbursed by around 50,000 kroner apiece. But the case was more about deceptive advertising rather than outright lying, noted Electrek. At that time, Tesla Motors Inc claimed that it has always made it certain that the number were not for the vehicle, but for the motors.

Norway is one of the largest markets for the Model S sedan, partly because of state subsidies to motivate electric-car purchases. The P85D version, after it came out two years ago, was popular for its “insane mode” acceleration option. The EV maker does not sell the P85D variant anymore in Norway.

On Wednesday, Tesla shares closed up 0.28% at $205.22. Year to date, the stock is down almost 14% while in the last one-year, it is down over 21%.

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Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.

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