Good news for dissatisfied Tesla customers!

Tesla polarises - some Tesla buyers are enthusiastic and others would prefer to "get rid" of their Tesla. Dissatisfied Tesla customers may be able to get rid of their car free of charge and without disadvantages even after months by cancelling the contract. This applies to consumers who ordered their vehicle from Tesla online or by telephone by around 17 April 2023 and were incorrectly informed about their right of withdrawal.

Incorrect cancellation instructions would mean that consumers would have a significantly extended right of cancellation, which could only be exercised 12 months and 14 days from handover ends. In addition, there is a good chance that consumers in the event of cancellation no compensation have to pay. Furthermore, it may be possible to keep an environmental bonus that has already been received.

After the initial Tesla hype, there are now quite a few dissatisfied Tesla customers. Sensor and software problems in particular (rain sensor, steering assistant, warning systems, automatic high beam and others) have attracted negative attention. Often even a software update does not bring the hoped-for improvement or solution to the problem. Some vehicles are even said to lack ultrasonic sensors, which means that other functions such as "Tesla Vision" are impaired.

Instead of selling the car, it might be much more economical for the dissatisfied Tesla customers to cancel the contract. A sale of the used Tesla would generally be associated with a loss in value, whereas there might be no financial disadvantages to fear in the event of cancellation.

Tesla cancellation possible for all models?

An extended cancellation of the contract is possible for all Tesla models if the cancellation policy used in the contract concluded online or by telephone was incorrect. Model 3, Model Y, Model S or Model X - cancellation would be possible for all models.

Tesla cancellation - what about damages and compensation?

Gem. § 357a BGB In the event of cancellation, compensation must be paid for use that goes beyond a normal inspection of the vehicle. This includes, for example, the kilometres driven and damage to the vehicle.

However, if the cancellation policy is incorrect, the following may apply No value replacement owed. Tesla buyers are therefore likely to receive a full refund of the purchase price under certain circumstances.

Tesla cancellation - what about the environmental premium and a GHG quota already sold?

Another important question for consumers cancelling their Tesla is whether they have to pay back the environmental bonus or BAFA bonus that they received for their vehicle. In our opinion, the premium does not have to be repaid in the event of cancellation if the eligibility requirements have been met - i.e. if the customer has registered the vehicle for six or twelve months. This legal situation applies in any case to applications that have been submitted by 9 December 2022 and the six-month holding period has been met. In our opinion, a GHG quota is also unlikely to be refunded.

Tesla cancellation - what are the costs?

If the Tesla customer cancels the contract and Tesla then simply refunds the purchase price, there are normally no costs in our estimation. 

However, if Tesla does not refund the purchase price within 14 days and the customer were to instruct a lawyer, costs would be incurred for the lawyer's work. In some cases, legal expenses insurance may cover the lawyer's fees and court costs. In principle, the losing party must bear the legal costs. If Tesla loses, Tesla would therefore have to bear all the costs. And vice versa, of course - if the Tesla customer loses and does not have legal expenses insurance, he would have to bear the costs.

If you do not yet have legal expenses insurance, you could possibly take out insurance and only then declare your cancellation.