Tesla ruled to compensate owner for sales fraud in China-CnEVPost

(Source: CnEVPost)

Tesla was previously sued by an owner for alleged sales fraud, and now the final verdict shows that is required to return the purchase price of the car to the owner for RMB 778,200 ($120,304) and pay the same amount of compensation.

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The owner, Li Zhilong, purchased a Tesla Model X from Tesla Wenzhou with an inconsistent drive motor model certificate, which prevented him from obtaining a license plate at the vehicle administration office, according to a verdict released by the Lishui Intermediate People's Court in Zhejiang Province.

This resulted in his vehicle being forced to sit unused for over a year, so the owner sued Tesla for the return of the purchase price and payment of three times the amount of compensation.

Li had negotiated with Tesla, who had accompanied him to the vehicle administration office to assist him in obtaining a license plate.

Tesla Wenzhou argued that Li was also responsible for the failure to get the license plate because he took the initiative to inform the officers that there was a problem with the consistency of the motor.

Tesla Wenzhou then proposed to return the car for the owner's original price, compensate him for the loss of RMB 5,000 in loan interest, and pay him RMB 6,000 for transportation and food expenses.

However, Tesla demanded that the difference in insurance and handling fees for the return of the car be borne by Li himself and that the costs of the first and second trial be borne by Li.

Li refused to accept and continued to adduce evidence to the court.

The court held that Tesla Wenzhou did not truthfully inform the owner that the vehicle had the problem of not being able to obtain a license plate at the first time, and its behavior was a fraudulent act of intentionally concealing the true situation, and it should bear the corresponding compensation responsibility.

During the second trial, the court made several mediation efforts in the hope that Li would lower the amount of the claim, and the latter finally agreed to ask for only the same additional compensation as the purchase price of the car. However, Tesla failed to agree to the mediation proposal, resulting in the failure of the second trial mediation, according to court document.

"The Court, taking into account the principle of honesty and credit in civil conduct, the degree of fault of the parties, the fact that the vehicle could not be properly licensed and used, the costs incurred by Li Zhilong to defend his rights, such as litigation fees and attorney's fees, and the mediation between the two parties, ordered that Tesla Wenzhou compensate Li for economic losses of 778,200 yuan," The document shows.