Tesla Ordered to Fully Reimburse German Autopilot Customer; Seen as 'Big Deal'

Der Spiegel, the largest German news site in the country, reported Friday that a Munich court has ordered electric vehicle giant Tesla (NASDAQ: TSLA) to reimburse a customer almost 112,000 euros. The cost she paid for a Model X SUV. The reimbursement was ordered due to problems with the vehicle's Autopilot function.

A technical report showed the vehicle did not reliably recognize obstacles like the narrowing of a construction site and would at times activate the brakes unnecessarily. The court ruled that this caused a “massive hazard” that could lead to collisions.

GLJ Research analyst, Gordon Johnson called the ruling a "BIG DEAL," and noted that “this reward/ruling to is for the ENTIRE PRICE OF THE CAR, not just the cost of the Autopilot option.”

He added that it seems if a customer, in Germany, purchases a Tesla vehicle primarily for the promised “Full Self-Driving” feature, “one may be able to sue for the FULL PRICE of the car.”

Johnson sees this development as significant, as Tesla CEO Elon Musk once said: “solving Full Self-Driving is the difference between Tesla being worth a lot of money and being worth basically zero”.

By Michael Elkins

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