If you’re having a serious issue with Tesla and want to file an arbitration, here’s a step-by-step guide to help you do it the right way.

REMEMBER: THIS IS NOT LEGAL ADVICE. I AM NOT YOUR LAWYER. THIS IS FOR INFORMATIONAL AND EDUCATIONAL PURPOSES ONLY. THIS IS AN OVERVIEW AND NOT A GRANULAR INSTRUCTION MANUAL. I CANNOT POSSIBLY REPLICATE 40 YEARS OF EXPERIENCE IN A WEB PAGE.

📬 Step 1: Send a Pre-Arbitration Demand to Tesla

Before you can file with AAA, you must send a written demand for settlement to Tesla.

Email it to: resolutions@tesla.com

Include in your email:

  • Your full name and contact info
  • VIN or order number (if available)
  • A short and clear description of the issue, such as “I paid for Full Self-Driving and the car still requires my supervision” or “I paid for Full Self-Driving and Tesla has publicly stated that my HW3 car will not run Full Self-Driving”
  • The relief or compensation you’re asking for.
  • Remember that anything you write to Tesla may be used against you in arbitration. It shouldn’t, since it could be argued that it is a settlement discussion, but you never know.
  • If you are uncomfortable doing this, find someone to help you, including considering hiring a lawyer. I’m not saying that you should pick me. But if you’re unsure, pick a lawyer you trust.
  • This is the first step in litigation. Think about what you’re doing. Think about how an arbitrator may interpret what you write.

⏱ Wait 60 days before filing with AAA. Tesla may respond—or not.

Here’s a tip to have really good records, open a free account at Rpost and send the mail using their certified mail system. It will give you detailed tracking on your email’s path to Tesla, who read it and when.

Step 2: File with the American Arbitration Association (AAA)

After the 60-day wait, you can start arbitration:

  • Prepare your arbitration claim. Arbitration is supposed to be simple. You can write an explanation of your claim. Pretend that you are talking to an arbitrator in conversation. You don’t have to sound like a lawyer, even if you are one. The claim I filed was in narrative form, like a letter.
  • Attach relevant documents to the claim like the Order Agreement, Purchase Agreement, any emails and any texts.
  • Save everything as a pdf.
  • Visit: AAA Consumer Arbitration Portal
  • Choose: “File or Access a Consumer Arbitration Case”
  • Submit your claim online. You will have to complete AAA’s form.
  • Depending on the language in your contract, you may have to pay the initial filing fee, which is around $200. Tesla is required to pay the rest.
  • Keep in mind that the arbitrator is allowed to award the costs against you if they determine that your claim is “frivolous”. So make sure you treat this seriously and have a real case.
  • Once you file, you will get a confirmation.
  • Your agreement may require that you send Tesla a copy of the claim you filed. Send it by email to resolutions@tesla.com. You can use Rpost again as you get 3 free Rpost emails per month.

What Happens Next?

  • AAA assigns a case number, case manager and arbitrator.
  • Tesla responds to your claim.
  • You’ll attend a scheduling call which will probably be by Zoom. This call, which will be with the arbitrator, will discuss the claim, deadlines and a final hearing date.
  • Among the deadlines to be discussed will be discovery, exhibit lists and witness list. You are entitled to ask Tesla for documents related to your claim. Tesla will likely be hesitant to provide you with anything. In my case, I received copies of the documents I signed, copies of Tesla webpages related to Autopilot and Full Self-Driving, a copy of the webpage related to the “Safety Score” and a copy of the manual for my car. Note: Look at the manual they send you. The copy they sent me did not mention FSD at all. It only discussed autopilot.
  • Tesla may also ask for documents from you relevant to the case. Make sure you are honest and open with them about what documents you have. Also make sure you look at your emails and text messages. Use the search function in your emails to see what emails you received from “@tesla.com”.
  • Cooperate with Tesla’s lawyer in the preparation of a “joint” exhibit list, which means that these are exhibits that both sides agree can be used at the hearing without objection. You may also file your own exhibit list, which are exhibits that Tesla does not agree on. You can still try to use them if the arbitrator determines they are admissible.
  • Make sure to file your witness list. This is the list of witnesses who you may call. Usually this list includes a brief summary of the topics the witness is expected to testify about. It doesn’t have to be detailed.

Step 3: The arbitration hearing

The arbitrator serves as the judge and jury in the arbitration. It will be your job to convince the arbitrator that Tesla owes you something. You can use the claim you filed as a guide to your testimony. This is the general order of events at an arbitration.

  • Introductions of the arbitrator, the parties and their representatives.
  • Opening Statements – This is an opportunity to tell the arbitrator what you intend to prove and what you know you can prove. If you are representing yourself, you can waive opening statements because your testimony will duplicate your opening statement. The arbitrator will appreciate the fact that you don’t repeat yourself. Pay attention if Tesla presents an opening statement and see what they think their case will be.
  • Testimony – if you are representing yourself, and the only witness, you can tell a narrative. Be sure to include any relevant documents as part of your testimony, including any documents that Tesla didn’t agree to but you wanted to introduce. Ask the arbitrator to “admit” the document into evidence after you identify it and describe what it is. Make sure that someone from your side testifies what your damages are. It can be as simple as pointing to a number on your Purchase Agreement and saying “This is what we are looking for.” but don’t forget any taxes and pre-judgment interest.
  • Cross-examination – This is the opportunity for one side to ask questions about the case to the other side’s witnesses. Once a witness has testified, the other side will ask questions. These questions can be used to establish facts favorable to your case such as “The clause in paragraph X says that no other representations count other than what is in the Agreement, correct?” or “How many times have you testified for Tesla in deposition, arbitration or litigation?” If the witness is Michael Calafell, make sure to ask him if he’s ever given testimony in any matter which Tesla was later forced to recant and disavow.
  • Closing – This is your opportunity to summarize the testimony and evidence. Use specific references to the testimony of witnesses and citations to exhibits, such as the Order Agreement. Make sure to be clear in your request for damages.
  • Award – In arbitration world, an “award” is like a jury verdict. The arbitrator determines who wins and who loses and who gets any money, if any. In my case, the arbitrator awarded $10,600 and Tesla paid the money within three days.

 

It all seems so complicated? Is there another way?

Don’t feel self-conscious that this seems scary or overwhelming. Remember, there are lawyers, like me, who do this work all the time. If this is your first time in arbitration, you might feel out of place.

After you file the arbitration, Tesla may offer to settle with you. You have to decide if it is worth avoiding a hearing by accepting less than the full amount that you’re seeking. Remember that Tesla has costs, too. So Tesla needs to factor in those costs as well. If you settle with Tesla, they will likely require that you sign some sort of nondisclosure agreement. It is your right to turn down that request.

In our case, we discussed settlement. I even told Tesla that it was still a good deal to settle with us if they paid us the full amount because they could get a nondisclosure. They didn’t settle with us, so I can talk about the case and the result of the case. It would be in Tesla’s best interest to settle cases rather than continue taking them to arbitration with the potential of losing. The more cases they lose, the more likely it will be that more cases will be filed. And the more cases that get the filed, the more likely it will be that settlements will become harder.

And, finally, if this is just too much, but you still want to try getting your money back, see if you can find a lawyer to represent you.