Tesla Made To Reimburse Owner After Car Deemed 'Massive Hazard'

Elon Musk's electric car company Tesla has been forced to reimburse a German customer after a court deemed the vehicle they had bought was a "massive hazard."

Tesla was forced to pay back €112,000 ($114,746.80) for a Model X SUV, covering most of the purchase price of the vehicle.

In June, the Munich I District Court made the decision after a technical report came to the conclusion that the driver's assistance system did not adequately or reliably recognize obstacles, according to a report by German publication Der Spiegel. The technical report has not yet been made public.

In addition to this fault, the car would break repeatedly and was deemed a "massive hazard" in city centers.

A line of Tesla cars charge on July 17, 2022 in Nephi, Utah. Tesla was made to reimburse a car owner after their vehicle was deemed to be a "massive danger." George Frey/Getty

Tesla lawyers argued that the autopilot feature was not intended for city traffic.

This was rejected by the court, which ruled that users could be distracted by having to repeatedly switch the autopilot on and off manually, according to the Der Spiegel report.

"Once again it shows that Tesla does not keep promises when it comes to autopilot," plaintiff attorney Christoph Lindner said.

In June, Musk admitted there were issues that Tesla was working on resolving, most notably the Full Self-Driving capabilities of its cars.

During an interview with members of a Tesla club in Silicon Valley, Musk said it was "essential" the company is able to resolve any issues surrounding this feature.

"The overwhelming focus is solving Full Self-Driving," he said."That is essential, that is really the difference between Tesla being worth a lot of money or being worth basically zero."

Tesla has faced difficulties in the past regarding the safety of some of its cars.

In February, the company was forced to recall 578,607 vehicles because of the potential danger they posed to pedestrians, according to U.S. regulators.

The National Highway Traffic Safety Administration (NHTSA) has said the vehicles failed to comply with safety standards.

The vehicle manufacturer recalled some 2020-2022 Model S, Model X and Model Y vehicles and 2017-2022 Model 3 vehicles after it was found the pedestrian warning system mandated on all hybrid and electric vehicles to be non-compliant on Tesla models equipped with the Boombox function. This allowed sounds to be played through an external speaker while the vehicle was moving.

However, Tesla said it was not aware of any crashes, injuries or fatalities resulting from the feature.

The company plans to disable the Boombox functionality when the vehicle is in Drive, Neutral and Reverse modes via an over-the-air software update.

Tesla introduced the Boombox in December 2020 and has had multiple meetings with the NHTSA after they issued an information request in January 2021.