Tesla ordered to pay used Model S buyer $175,000 for hiding damage - Business Insider - Business Insider

Tesla model S — The buyer noticed the damage after his Model S broke down multiple times.

A Beijing court ordered Tesla to pay $175,000 to a secondhand Model S buyer for concealing crash damage, Chinese outlet Caixin reported.
The buyer discovered that parts of the car were welded together after it broke down multiple times, Caixin said.
The used cars Tesla sells are supposed to exhibit "no evidence of structural repairs," according to the company
Tesla denied the claims and said it will appeal the ruling.
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Tesla concealed structural damage on a used Model S it sold in China and must compensate the car's buyer, a Beijing court ruled Friday according to Chinese outlet Caixin and confirmed by Bloomberg.

The court ordered Tesla to pay the buyer 1.14 million yuan — roughly $175,000 at current exchange rates — after it concluded that parts of the sedan had been welded together after being damaged in a crash, Caixin reported. Chinese consumer protection law requires businesses to settle for triple a product's purchase price if they are found to have sold fraudulent goods.

According to Tesla's website, any used car it sells "has passed an internal inspection and may undergo light repairs to be prepared for sale," but secondhand vehicles should show "no evidence of structural repairs." Some cosmetic wear is to be expected, the automaker says.

The sedan's owner bought it in June 2019 for 379,700 yuan, online outlet Sina reported, and discovered that the C-pillar and rear fender had been cut and welded back together after the vehicle broke down multiple times. He then sued Tesla for damages.

A third-party evaluation ordered by the court determined that the repairs may have affected the vehicle's driving ability, and that they should have reduced the purchase price by 82,000 yuan, or approximately $12,500, according to Caixin.

Tesla denied there was any structural damage, but noted in court documents that the Model S was involved in a minor collision in January 2019 that required some repairs, the outlet reported. Tesla told Caixin and Bloomberg that it will appeal the ruling before it goes into effect.

Tesla has struggled with quality-control issues in the past. In October, the buyer of a new Model Y was driving down the highway when the car's roof detached and flew off, they told Business Insider.

But Tesla isn't the only automaker to be accused of selling certified preowned cars with undisclosed damage. Dealerships have occasionally been found to certify previously crashed vehicles, even if they don't pass inspection — and the US Federal Trade Commission advises that shoppers get an independent inspection even if they're looking at certified preowned vehicles.

Tesla did not respond to a request for comment.