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Tesla agrees to pay $1.5 million to settle lawsuit over battery throttling

According to Reuters, Tesla agreed to pay $1.5 million to settle a lawsuit alleging it used a software update to reduce the maximum battery voltage for some of its Model S sedans.

According to plaintiffs, around 1,743 vehicles were affected by the software update released in 2019. Upon reaching a settlement with the affected owners, Tesla agreed to pay each $625.

The court document said, ‘This amount represents an excellent and efficient result for the Settlement Class since it is many times the prorated value of the temporarily reduced maximum voltage.’ As a result, the Settlement Class will be released from claims related to the software updates that reduced the batteries’ maximum electrical voltage, then restored it.”

In March 2020, the owners’ lawyers released a corrective update which restored the vehicles’ voltage to its original level following a 7% reduction lasting another seven months. As a result of that second update, the vehicles’ voltage has steadily regained its former level.”

There is no immediate word on how Tesla will pay the plaintiffs. A judge from the appeals court will hear arguments regarding the proposed settlement on December 9. As of 2019, Tesla’s PR department has been disbanded; a spokesperson did not respond to a comment request.

Tesla has been forced to compensate its customers before when its vehicles’ batteries have been throttled. Thousands of Norwegians were penalized in May for slow charging speeds, with each paying 136,000 kroner (about $16,000).

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