Is a Form Error Costing Tesla Dearly?

07. August 2023 | Karl Mueller

A formal error could cost the US carmaker Tesla dearly: Because the cancellation policy was missing a telephone number, customers could possibly drive the cars much longer and then return them at no additional cost.

Actually, Tesla’s cancellation policy provides a 14-day period to return the vehicles. However, a telephone number must also be stored for the customer to contact them. Exactly this was missing until mid-April, reports teslamag.de. Tesla customers could take advantage of this legal loophole. Because without a service number, the free return option should be extended to one year – with repayment of the full purchase price.

Only a small group of customers could benefit

The Düsseldorf lawyer Matthias Böse discovered the formal error, but he also points out that the gap in the cancellation policy cannot be used by all customers. Only private buyers who ordered their vehicles online or by telephone could try the legal trick.

Commercial customers and buyers who bought their Tesla in a dealership are left out. Problems could also arise with leasing and financing contracts, Böse explained. This already severely limits the circle of potential beneficiaries.

Tesla is fighting back in court

As “teslamag.de” further reports, there are definitely interested parties in the legal loophole. Not only attorney Böse represents some clients in this regard. The Berlin consumer law firm Goldenstein states that it currently supports a good hundred clients who want to return their Tesla free of charge. Hundreds of requests would come in every month.

So far, Tesla has accepted some withdrawals that were received after the 14-day period. However, the carmaker demanded compensation for use per kilometer and a flat-rate value replacement. Wrongly, according to the law firm Goldenstein. If customers are not properly informed of their rights, as in Tesla’s cancellation policy, such claims are not allowed. The US automaker naturally sees things differently and is fighting back in court. The company has already appealed against a first default judgment against Tesla.