Tesla (NASDAQ:TSLA) Announce Expansion Of Warranty For Repairing Defective Main Computer System In Older Cars

Tesla (NASDAQ:TSLA) has announced a refund to older Model S and Model X cars owners for repairs that owners had to pay out pockets for fixing problems in the main computer. The electric car maker is expanding the warranty coverage to avoid a class action suit or costly recall.

Expanded warranty to avoid a class-action lawsuit

Over the past, there have been complaints from car owners about touchscreen failures and other issues relayed to the failure of memory chips in storing vehicle data. In an email to car owners, the company said that it would fund repairs for Model S and Model X EV that currently experience the problems under the expanded warrant with some conditions.

Affected cars are those manufactured from late 2012 to the beginning of 2018 before Tesla redesigned the central computer system in the cars. The main computer powers the touchscreen, where the driver can access most controls like navigation, entertainment, air-conditioning, and other features. Because of reliance on the car’s high-tech design and touchscreen as the user interface, any screen failure can render the car undrivable in some conditions.

Failure of the main computer renders the car undrivable in certain conditions

For instance, it can be challenging when one needs a defroster with also there being reports of failure while driving. Failures in the main computer can disable safety features such as backup cam, which helps drivers spot obstacles or pedestrians when they want to back out of a spot. With the expanded warrant, the company will now address concerns among most owners who have been complaining that the main computer can sometimes blackout while driving, which renders the car useless.

Already some owners have proposed a class-action lawsuit to push the company to address the issue. The expansion of the warrant will help prevent the suit filed on May 13, 2020, from advancing. The lawsuits allegedly claimed that the company had violated federal and Californian state laws about sales practices and fair market, vehicle warranties, and consumer safety.

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Published by Christine Lawrence

Christine Lawrence is a financial analyst. She loves analyzing socioeconomic trends in the background of financial moves. She has overall seven years of experience in Auditing, Finance and Writing.

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