Israeli Court Approves Class Action Against Tesla Over Airbag Misrepresentation

Four years after the initial filing, the Lod District Court approved a class action lawsuit against Tesla Israel for selling Model 3 vehicles with fewer airbags than advertised. Between February and April 2021, Tesla's website claimed the electric Model 3 launched in Israel had eight airbags and received a top safety rating of 8 from the Ministry of Transport. However, the vehicles actually contained only six airbags and qualified for a safety rating of 7. Tesla also promised LED fog lights, but the cars only had two LED rear lights.

The lawsuit, filed by attorneys Ron Solan and David Mizrahi, alleges Tesla misled customers by advertising features that were not present. Tesla responded that Model 3 cars imported from the US had eight airbags, while those from the Chinese factory had six, lacking two knee airbags. Approximately 1,400 vehicles were imported from the US, with thousands more from China during the same period. Tesla claimed the airbag count on its website complied with Ministry of Transport requirements but was not part of the purchase contract. They also argued that knee airbags are mandatory in the US due to different rear seatbelt laws, unlike Israel.

Judge Yishka Rotenberg accepted the request to proceed with the class action, noting possible breach of contract and product misrepresentation under consumer law. However, the judge rejected claims that Tesla failed to inform buyers about the shift from US to Chinese manufacturing, as plaintiffs did not prove Chinese-made cars were inferior. The court will now move forward with the lawsuit, though settlement talks are expected to begin soon. The case will be closely monitored for developments.