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Tesla Denies Model S Defect, Effort to Discourage Report to U.S.

The report adds, though, that the company later offered to pay half of the US$3100 ($4300) fix cost, if the owner agreed to sign a non-disclosure agreement (NDA) or “Goodwill Agreement”.

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The regulator called Tesla’s agreement “troublesome”. “That is preposterous”, Tesla emphasized.

Dustin Stockton is a political reporter for Breitbart News, a community liaison for Gun Owners of America, and a political strategist.

Tesla sold over 25,000 Model S cars in 2015 and its next vehicle, the Model 3, already has a large stock of orders. An NHTSA safety report reportedly said a defect could cause suspension control arms to break, which could severely impact a driver’s ability to control the vehicle.

The automotive blog Daily Kanban subsequently reported on the alleged safety problem and suggested the agreement could prevent it from being reported to regulators. Tesla officials there is no safety defect in either its Model S sedan or Model X crossover, the only two models the company now sells.

The electric auto company’s stock has been dropping ever since, from $233.59 U.S. on Thursday to below $220 on Thursday afternoon. The inquiry was in the earliest stages and no formal investigation had been opened.

However, the Model S owner disagreed with the prognosis.

“NHTSA has since told us that we have cooperated fully and that no further information is needed”, Tesla said.

The traffic agency said it expects Tesla to remove such language.

It says Tesla has regular contact with NHTSA and proactively reports defects.

The NHTSA also said it is looking into reports that Tesla has asked customers to sign nondisclosure agreements in connection with repairs handled by the automaker.

But now, Tesla is facing some bad news in the form of allegations that it urged customers to sign confidentiality agreements over mechanical issues with the Model S. An all-wheel drive version starts at $71,000.

Tesla further added that it operates all its own service facilities; and, thus, very closely keeps track of potential safety issues with its electric vehicles. The company noted that the “owner lives down such a long dirt road that it required two tow trucks to retrieve the car” and that the vehicle “was caked in dirt”.

Mr. Cordaro disputed that aspect of Tesla’s statement.

Silicon Valley-based Tesla – headed by billionaire Elon Musk – is banking on continued cash from Model S sales to fund the rollout of the Model 3.

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A spokesman for NHTSA did not respond to our request for comment.

Tesla Motors Inc Under NHTSA Probe Over Potential Model S Suspension Issues