Tesla Owner Owes $15K After Losing Court Battle Over Disabled Fast-Charging

Yahoo Finance ·

In August and September 2024, New Zealand electrical engineer Peter Goodricke purchased two written-off Tesla Model 3 vehicles at auction. Although he successfully repaired the cars and passed re-registration inspections, Tesla disabled their fast-charging capabilities via an over-the-air update due to their previous structural damage. Goodricke sued the automaker under the country's fair trading act, but his claim was dismissed. His appeal to the high court was also rejected, and he was ordered to pay approximately $27,000 NZD, or about $15,000 USD, in court costs to Tesla. The judge noted that Tesla retains the remarkable power to alter vehicle functionality long after the sale. Tesla maintains an Unsupported Vehicle Policy on its website, citing safety concerns and potential damage to Superchargers from unverified repairs involving high-voltage battery systems.

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Tesla (TSLA) has won a legal dispute over blocking fast-charging features via over-the-air updates for safety reasons on vehicles repaired after accidents. The New Zealand High Court ruled in favor of Tesla and ordered the vehicle owner to pay legal costs. This ruling reaffirms that manufacturers can exercise remote control rights even after vehicle sales.

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As Tesla's Unsupported Vehicle Policy was legally recognized as justified, the company maintains strong authority to control the safety of its battery and charging network. This may put the brakes on the private repair market, adding pressure to the used car resale and parts ecosystem.

The bullish scenario is that brand value and charging station infrastructure stability are highlighted through thorough safety management, while the bearish scenario is that regulatory risks expand due to consumer backlash against restrictions on repair freedom. The key indicator to watch is regulatory trends related to Tesla's software update policies.

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