logo
Tesla Ordered to Buy Back Model S Plaid After Brake Failure Ruling

Tesla Ordered to Buy Back Model S Plaid After Brake Failure Ruling

Yahoo18 hours ago
Tesla Ordered to Buy Back Model S Plaid After Brake Failure Ruling originally appeared on Autoblog.
A Norwegian court has ordered Tesla to buy back a Model S Plaid after a catastrophic brake failure during a track day, marking one of the most damning legal defeats for the automaker in recent memory. The Oslo District Court ruled in favor of the owner, Vilhelm Dybwad, who reached out to The Drive about the incident, after the high-performance EV failed to complete even a single lap without overheating its brakes—despite being advertised as a track-ready machine.The court found Tesla's marketing claims to be misleading and ruled that the $150,000 vehicle was sold under false pretenses. Tesla must now refund the full purchase price, pay interest, and cover legal fees—adding up to nearly $150,000 in total compensation.
What Happened on Track?
Dybwad's Model S Plaid experienced total brake fade at Rudskogen Motorsenter, Norway's most demanding racetrack, on its very first hot lap. The failure was immediate and severe: the car's brake system overheated almost instantly, flashing warning messages and rendering the car unsafe for track use.The owner filed suit under Norway's strong consumer protection laws. The court found that Tesla had marketed the Model S Plaid as 'track-capable' without equipping it with proper hardware to survive a performance environment. Tesla's defense—that a carbon-ceramic brake package was coming later—was not deemed sufficient, as it wasn't available at the time of purchase.
Marketing Promises Versus Reality
Tesla has long walked a fine line between performance bragging rights and practical durability. In this case, its own ads—including a Nürburgring campaign and various Plaid promo clips—were used as evidence of deceptive claims. This ruling comes at a time when Tesla is also facing significant pressure in the U.S. over how it markets its driver-assist features.Just this week, the company published a new safety report claiming its Autopilot system is significantly safer than manual driving, stating that cars using Autopilot went over six million miles between crashes in Q2. But critics argue that real-world user experience often paints a more inconsistent picture.That inconsistency has become a legal liability. In California, Tesla is now facing a potential 30-day sales ban over allegations of misleading advertising regarding its 'Full Self-Driving' and 'Autopilot' systems—terms regulators argue are dangerously inaccurate.
More Trouble Ahead
The buyback ruling could set a precedent in Europe and beyond, particularly for owners who have pushed the Model S or Model X beyond their daily comfort zones. Although Tesla has already launched track packages for newer Model S units—complete with upgraded brakes—this case highlights a wider problem for the company: the disparity between its marketing and real-world performance.It also comes amid growing global competition. In China, Tesla faces a serious threat from Dongfeng's new M-Hero M817, an off-road-capable hybrid SUV that racked up 10,000 pre-orders in just 24 hours. The M817's broad capability and local appeal make it a formidable rival in a market where Tesla's position has become less secure.
What This Means for Owners and Enthusiasts
For Model S Plaid owners, the takeaway is clear: despite its straight-line speed and headline-grabbing horsepower, the Plaid may not be as versatile as Tesla claims. Unless fitted with the appropriate hardware—and driven within its limits—the car may not meet the expectations its marketing has set.Whether this case sparks more lawsuits is unclear. But it's certainly part of a broader reckoning Tesla faces—not just for its product claims, but for its relationship with regulators and consumers worldwide.
Tesla Ordered to Buy Back Model S Plaid After Brake Failure Ruling first appeared on Autoblog on Jul 25, 2025
This story was originally reported by Autoblog on Jul 25, 2025, where it first appeared.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

CNBC Daily Open: This week's the Olympics for market watchers
CNBC Daily Open: This week's the Olympics for market watchers

CNBC

timean hour ago

  • CNBC

CNBC Daily Open: This week's the Olympics for market watchers

Choose a front-row seat and grab your popcorn. These five days will basically be the Olympics for market watchers: And looming over all those financial and macroeconomic events is U.S. President Donald Trump's August 1 deadline for his new tariffs. As Kim Forrest, founder at Bokeh Capital, said, "What isn't happening in this week?" Here's the ideal scenario for investors. The Magnificent Seven companies reporting earnings this week and the U.S. economy secure gold at their respective events. (The Fed is expected to keep rates unchanged — whether this qualifies the central bank for a medal is up for debate). Big trading partners of the U.S., such as South Korea and India, secure a deal with the White House and join the European Union and Japan at the podium, while Beijing extends its tariff suspension with Washington. If those events happen, U.S. stocks will probably have legs clear hurdle after hurdle — and the S&P 500 can continue topping record announces a trade agreement with the European Union. Most European goods, including cars, exported to the U.S. will face a 15% tariff, Trump said Sunday. The bloc also agreed to purchase $750 billion worth of U.S. energy, he added. Samsung inks a $16.5 billion contract with Tesla. While the South Korean firm didn't disclose the counterparty in its regulatory filing, Tesla CEO Elon Musk confirmed that it will manufacture the automaker's "next-generation AI6 chip." Perfect week for the S&P 500. The broad-based index rose Friday to close at a high — its fifth record in a row last week. The Nasdaq Composite and Dow Jones Industrial Average also advanced. Asia-Pacific shares were mixed Monday. The Fed is ready to start lowering rates, Trump said. On Friday, the U.S. president said Fed Chair Jerome Powell told him "the country is doing well," which Trump took to mean "he's going to start recommending lower rates." Futures markets disagree. [PRO] Winners of Hong Kong's crypto framework. The island's bill, which takes effect Friday, formalizes the process for financial companies to issue and manage stablecoins. Two online brokerages which offer crypto trading stand to benefit, analysts said. Trump's tariff deal offers scant relief for Japan automakers as bigger threat looms Japanese automakers may have sidestepped crushing U.S. tariffs, but the reprieve may offer little comfort. Their position in the global market is being eroded by Chinese automakers even as they face persistent structural challenges domestically. Still, analysts acknowledge that Trump's finalized tariff rate brings at least one benefit: some predictability.

Musk Announces Deal With Samsung For Tesla AI Chips Made In Texas
Musk Announces Deal With Samsung For Tesla AI Chips Made In Texas

Forbes

timean hour ago

  • Forbes

Musk Announces Deal With Samsung For Tesla AI Chips Made In Texas

Tesla CEO Elon Musk announced late on Sunday that Samsung will manufacture the car maker's next-generation AI chip at its upcoming Texas semiconductor plant as part of a deal worth $16.5 billion, in a significant boost for Samsung's struggling chipmaking arm. Tesla CEO Elon Musk announced that Samsung will manufacture Tesla's next-generation AI chips. Getty Images In a post on X, Musk announced that 'Samsung's giant new Texas fab will be dedicated to making Tesla's next-generation AI6 chip,' adding: 'The strategic importance of this is hard to overstate.' In a regulatory filing made in South Korea shortly before Musk's announcement, the electronics giant announced it had secured a $16.5 billion contract with a 'large global company.' The multi-year deal will run through till the end of 2033, and Samsung's semiconductor fabrication plant in Taylor, Texas, is scheduled to begin operations in 2026. In a follow-up post, Musk said Samsung has agreed to 'allow Tesla to assist in maximizing manufacturing efficiency,' but he didn't specify whether this meant Tesla would assist in bringing the plant into operation. Musk pointed out the Samsung fab 'is conveniently located not far from my house' and claimed he would walk the production line 'personally to accelerate the pace of progress.' Musk pointed out that Samsung currently manufactures Tesla's AI4 chip. The billionaire said his company has completed the design for the AI5 chip, which will be manufactured by TSMC, Samsung's primary chipmaking rival. According to Musk, the AI5 chips will be first manufactured in Taiwan and then later at TSMC's Arizona plant. How Have The Markets Reacted? Shortly after the announcement, Samsung Electronics' Seoul-traded shares surged 6.22% to $50.6 (KRW 70,000).

Samsung to Make Tesla AI Chips in $16.5 Billion Multiyear Deal
Samsung to Make Tesla AI Chips in $16.5 Billion Multiyear Deal

Yahoo

timean hour ago

  • Yahoo

Samsung to Make Tesla AI Chips in $16.5 Billion Multiyear Deal

(Bloomberg) -- Samsung Electronics Co. will produce AI semiconductors for Tesla Inc. in a new $16.5 billion pact that marks a win for its underperforming foundry division. The High Costs of Trump's 'Big Beautiful' New Car Loan Deduction Can This Bridge Ease the Troubled US-Canadian Relationship? Trump Administration Sues NYC Over Sanctuary City Policy South Korea's largest company announced on Monday that it secured the 22.8 trillion won chipmaking agreement, which will run through the end of 2033. The plan is for an upcoming plant in Taylor, Texas, to produce Tesla's next-generation AI6 chip, Tesla chief Elon Musk said on X, confirming a Bloomberg News report. Samsung's Seoul-traded shares rose as much as 5%, to their highest since September. A company spokesperson declined to comment, citing confidentiality terms in its contract. 'The strategic importance of this is hard to overstate,' the Tesla chief executive officer and X owner wrote. Musk, 54, will walk the production line himself and has been authorized by Samsung to assist in optimizing production, he said. The contract win comes as Samsung has been steadily losing ground in chip manufacturing. The company, which makes its own memory chips and also fabricates semiconductors on behalf of clients, has had difficulty bringing in enough orders to fully utilize its foundry capacity. It has postponed completion of construction and operational ramp-up of its new Texas fab to 2026. 'Their foundry business has been loss-making and struggling with under-utilization, so this will help a lot,' said Vey-Sern Ling, managing director at Union Bancaire Privee in Singapore. 'Tesla's business may also help them to attract other customers.' That's in contrast to leading chipmaker Taiwan Semiconductor Manufacturing Co., which still cannot meet all demand. TSMC held a dominant share of 67.6% of the global foundry market in the first quarter this year, according to Taipei-based TrendForce. Samsung's share slipped to 7.7% from 8.1% in the previous quarter. What Bloomberg Intelligence Says Samsung Electronics' new contract to supply semiconductors implies a recovery in its foundry business' 2-nanometer generation chip production. The $16.5 billion contract spans 2025-33 and could boost Samsung's foundry sales by 10% annually, we calculate. — Masahiro Wakasugi and Takumi Okano Click here for the full research Samsung and TSMC are both on pace to deliver the next generation of semiconductor advancement — moving to 2-nanometer fabrication — and the new deal is seen as a signal of confidence for the company's upcoming fabrication technology. --With assistance from Seyoon Kim, Linda Lew and Abhishek Vishnoi. (Updates with Musk's confirmation and further details from third paragraph) Burning Man Is Burning Through Cash It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Confessions of a Laptop Farmer: How an American Helped North Korea's Wild Remote Worker Scheme Elon Musk's Empire Is Creaking Under the Strain of Elon Musk Dude! They Killed Colbert! ©2025 Bloomberg L.P. Sign in to access your portfolio

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store