Tesla Israel Faces 22.1 Million Shekel Class Action Over Model Y Battery Failures
A 22.1 million shekel class-action lawsuit was filed against Tesla Israel over sudden battery failures in Model Y vehicles, alleging consumer deception and lack of recalls.
A massive controversy has erupted in the Israeli automotive market following an investigative journalism report, leading to a dramatic class-action lawsuit of 22.1 million shekels filed against Tesla Israel at the Central District Court in Lod. The lawsuit accuses the electric vehicle giant of severe consumer deception, failure to disclose a material defect, and supplying a defective product. At the center of the lawsuit is a phenomenon of sudden collapse and total shutdown of high-voltage batteries in popular Model Y vehicles, while the company allegedly attempts to conceal the extent of the issue from the public.
The Scope of the Defect and Affected Models
According to a report by Walla and the legal motion filed through Attorney Eli Levy, the systemic failure occurs in BYD-manufactured batteries installed in Tesla Model Y vehicles from the 2023-2024 manufacturing years imported from the Berlin gigafactory. Ministry of Transportation data indicates that approximately 4,127 vehicles with these specifications operate in Israel, with about 165 drivers already forming a dedicated group following the immobilization of their cars. The company was reportedly well aware of the flaw, especially after an identical phenomenon broke out in Taiwan, but chose to pursue a policy of ambiguity and cover-up locally.
While Tesla issued a public apology in Taiwan, expanded its fleet of replacement vehicles, and committed to preserving vehicle values, the company in Israel avoided a proactive recall. The plaintiffs' experiences illustrate the severe impact: one plaintiff's vehicle broke down, requiring a months-long wait for a replacement battery without an adequate loaner car. Meanwhile, another plaintiff, whose car broke down shortly after the warranty expired, was quoted an exorbitant sum of approximately 63,000 shekels by Tesla to replace the battery.
Legal Demands and Market Impact
"The conduct of the electric vehicle giant toward local drivers, who were left without proper response and without replacement vehicles, has sparked immense rage among automotive enthusiasts and consumers."
The lawsuit amount comprises depreciation and a blow to marketability estimated at 5,000 shekels for each of the thousands of relevant vehicle owners, alongside damages for loss of use, emotional distress, and reimbursement for battery replacement costs. In addition to financial compensation, the plaintiffs are asking the court to issue an injunction compelling Tesla to conduct proactive inspections, replace defective batteries free of charge, extend the warranty on the battery packs, and maintain available spare parts inventory and loaner vehicles in Israel.
Tesla Israel's legal entanglement revives difficult questions regarding service quality, the importer's treatment of customers, and liability for electric vehicle batteries in Israel. With the class-action lawsuit now sitting before the Central District Court, Tesla's future in the local market faces an unprecedented legal and public test.