`
`
`Eve-Lynn J. Rapp (SBN 342892)
`erapp@edelson.com
`
`Edelson PC
`2101 Pearl Street
`Boulder, Colorado 80302
`Tel: 720.741.0084
`Fax: 720.741.0081
`
`Interim Lead Class Counsel
`
`Additional Counsel Listed on Signature Page
`
`
`MATTHEW AMANS and
`BABAK MALEK, individually and on behalf of
`all similarly situated individuals,
`
`
`
`Plaintiffs,
`
`
`v.
`
` TESLA, INC., a Delaware corporation,
`
`
`
`Defendant.
`
`
`
`
`
`
`
`
`
`
`UNITED STATES DISTRICT COURT
`
`NORTHERN DISTRICT OF CALIFORNIA
`
`SAN FRANCISCO DIVISION
`
`Case No. 3:21-CV-03577-VC
`Case No. 3:21-CV-03681-VC
`Case No. 3:21-CV-05528-VC
`
`CONSOLIDATED CLASS ACTION
`COMPLAINT
`
`1) Breach of Contract,
`
`2) Cal. Bus. & Prof. Code § 17200 et seq.,
`
`3) Cal. Bus. & Prof. Code § 7160,
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`4) Cal. Civ. Code. §§ 1750 et seq., and
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`5) 15 U.S.C. § 1601 et seq.
`
`
`
`
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`CONSOLIDATED CLASS ACTION COMPLAINT AND DEMAND FOR JURY TRIAL
`Plaintiffs Matthew Amans and Babek Malek bring this Class Action Complaint and Demand
`for Jury Trial against Tesla, Inc. (“Tesla”) for its unfair and deceptive practices in marketing and
`selling its solar roof product (referred to herein as the “Solar Roof”). Plaintiffs, for their Complaint,
`allege as follows upon personal knowledge as to themselves and their own acts and experiences,
`and as to all other matters, upon information and belief, including investigation conducted by their
`attorneys.
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`CONSOLIDATED CLASS ACTION COMPLAINT
`
`1
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` Case No. 21-cv-3577-VC (lead case)
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`Case 3:21-cv-03577-VC Document 54 Filed 02/22/22 Page 2 of 26
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`NATURE OF THE ACTION
`1.
`Defendant Tesla, Inc. (“Tesla”) is a manufacturer and seller of electric vehicles and,
`more recently, solar panels and battery backup units.
`2.
`Tesla’s solar energy business emerged after Tesla’s multi-billion-dollar acquisition
`of a heavily indebted solar panel company called SolarCity, which was co-founded by Elon Musk
`and his cousins. SolarCity was on the brink of collapse when Musk, as CEO of Tesla and a
`chairman of SolarCity, orchestrated a merger with Tesla in an effort to save the solar panel business
`(and his own multi-million-dollar investment in it).
`3.
`In order to persuade Tesla’s investors to approve the controversial acquisition, Musk
`revealed a new product in October 2016—on the set of the television series Desperate
`Housewives—called the Solar Roof. Musk told analysts that Tesla’s acquisition of SolarCity and its
`Solar Roof would create a “huge market” for the combined companies. The merger would
`ostensibly allow Tesla to sell consumers the entire solar energy solution: generation (solar panels),
`storage (batteries), and transportation (electric cars).
`4.
`The Solar Roof promised novel and enticing solar energy solutions for homeowners.
`Unlike traditional boxy solar panels that sit atop a roof, the Solar Roof was designed to make the
`roof itself solar powered. The product comprises individual roof tiles with integrated photovoltaic
`(PV) solar cells capable of generating energy, while having the appearance of a traditional roof.
`During the product’s reveal, Musk touted the Solar Roof as more durable than a traditional roof and
`a more affordable energy solution for homeowners.
`5.
`However, the technology behind the Solar Roof was far from complete at the time
`Musk revealed the product. The Solar Roof that Musk showcased to investors at the October 2016
`event was in fact made entirely of non-functional “dummies,” according to engineers familiar with
`it. Some even referred to the event as “vaporware.” Thus, when the Solar Roof entered the market
`shortly thereafter, its technology was subprime, and it continued to disappoint in the years that
`followed.
`6.
`Tesla continued to revise the Solar Roof’s technology and, while still struggling to
`turn a profit after its SolarCity acquisition, the company released a “Version 3” of the Solar Roof
`
`CONSOLIDATED CLASS ACTION COMPLAINT
`
`2
`
`
` Case No. 21-cv-3577-VC (lead case)
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`Case 3:21-cv-03577-VC Document 54 Filed 02/22/22 Page 3 of 26
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`(the now-current version) in late 2019. The newest version of the Solar Roof promised several
`improvements over the previous versions including faster installation times and lower costs.
`Consumers wishing to purchase a Solar Roof, including Plaintiffs and the Classes (defined below),
`pre-ordered the product, agreed to a total project cost (based on their unique installation and roof
`requirements), paid a deposit, and prepared their properties for installation.
`7.
`Unfortunately, after finalizing its purchase and installation agreements with
`customers who ordered the newest Solar Roof, Tesla delayed performance beyond the timeframe
`promised, switched certain materials without consent, and in April 2021 advised customers that
`Tesla would not honor their contracts unless they agreed to a substantial price increase—in some
`instances just days before the customer’s scheduled installation. Tesla’s price increases
`substantially, materially, and unilaterally changed the terms of the parties’ purchase agreements and
`represented as much as a 100% increase for many consumers, amounting to tens of thousands of
`dollars of additional, not bargained-for, and unanticipated costs.
`8.
`Tesla’s behavior in marketing and selling the Solar Roofs is a textbook bait and
`switch scheme. The company lured in consumers with promises of stylish, affordable solar energy
`solutions with predictable installation times and costs, but then sought to hold its customers hostage
`with unjustified and unlawful price increases and delays.
`9.
`Following Tesla’s announcement in April 2021 that it would not honor its contracts,
`any consumers who wanted to move forward with the Solar Roof installation in which they had
`already invested considerable time and money had to agree to pay above and beyond the price they
`originally agreed to, as there is no alternative or comparable product on the market.
`10.
`Plaintiffs filed suit within weeks of Tesla’s price increase to hold Tesla accountable
`for its deceptive, unlawful, and unjust conduct and to compel compliance with the terms of its
`executed contracts.
`11.
`In or around early September 2021, Tesla suddenly reversed course and represented
`that it would honor its contract pricing agreed to prior to the April 2021 price increase and would
`refund any increased payments already made. However, Tesla has not agreed to honor the
`installation dates long-ago promised, and even more troubling, it has continued to deceptively
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`CONSOLIDATED CLASS ACTION COMPLAINT
`
`3
`
`
` Case No. 21-cv-3577-VC (lead case)
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`Case 3:21-cv-03577-VC Document 54 Filed 02/22/22 Page 4 of 26
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`increase pricing (contrary to its representations) and impose new and/or additional charges on
`customers, on top of its previously agreed-to prices. In other words, Tesla’s alleged promise to
`remedy the price hikes underlying this lawsuit appears to be yet another bait and switch scheme.
`PARTIES
`12.
`Plaintiff Matthew Amans is an adult individual and at all times relevant has been a
`citizen and resident of California.
`13.
`Plaintiff Babak Malek is an adult individual and at all times relevant has been a
`citizen and resident of California.
`14.
`Defendant Tesla, Inc., is a corporation organized and existing under the laws of
`Delaware with its principal place of business located at 3500 Deer Creek Road, Palo Alto,
`California 94304.
`
`JURISDICTION AND VENUE
`15.
`This Court has jurisdiction over this action pursuant to 28 U.S.C. § 1332(d)(2),
`because (i) at least one member of the Class is a citizen of a different state than Defendant, (ii) the
`amount in controversy exceeds $5,000,000, exclusive of interests and costs, and (iii) none of the
`exceptions under that subsection apply to this action. Specifically, Tesla marketed and entered into
`agreements for its Solar Roof with customers in various states across the country, including but not
`limited to, Arizona, California, Florida, Massachusetts, Maryland, New Jersey, New York,
`Pennsylvania, and Oregon.
`16.
`This Court has personal jurisdiction over Defendant because Defendant conducts
`substantial business in California and has its principal place of business and headquarters in
`California and this District.
`17.
`Venue is proper pursuant to 28 U.S.C. § 1391(b) because Defendant maintains its
`headquarters and conducts significant business in this District.
`COMMON FACTUAL ALLEGATIONS
`Overview of the Tesla Solar Roof
`18.
`Tesla currently offers for sale two solar products: traditional solar panels which are
`installed on top of existing roofs, and the Solar Roof which replaces the entire existing roof. The
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`CONSOLIDATED CLASS ACTION COMPLAINT
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`4
`
`
` Case No. 21-cv-3577-VC (lead case)
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`
`
`Case 3:21-cv-03577-VC Document 54 Filed 02/22/22 Page 5 of 26
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`1 Solar Roof is a relatively new technology and consists of roof tiles with embedded photovoltaic
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`(PV) cells capable of generating electi·icity from the sun.
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`19.
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`This new technology promises several new benefits to homeowners.
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`20.
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`First, unlike u-aditional rectangular solar panels which proti11de from the roof, Solar
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`5 Roof tiles seamlessly integrate into the consumer's roof and thus are more aesthetically pleasing for
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`6 homeowners. See Figure 1.
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`(Figure 1)
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`21.
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`Tesla touts this aesthetic benefit on its website: "Replace your cmTent roof with
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`18 Solar Roof and power your home with a fully integrated solar system. With a seamless design, each
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`tile looks great up-close or from the su-eet, complementing your home's architecture. " As Elon
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`20 Musk stated, "[w]hen you have [the Solar Roof] installed on your house, you' ll have the best roof in
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`the neighbor hood. The aesthetics are that good."
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`22.
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`Additionally, according to Tesla, the Solar Roof promises to be more durable than a
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`standard roofing tile. On its website Tesla explains, "Solar Roof tiles are more than three times
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`sti·onger than standard roofing tiles and are engineered for all-weather protectio n. With a 25-year
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`25 wananty , Solar Roof lasts longer than an average roof and protects your home for decades to
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`26 come."
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`Another significant benefit that the Solar Roof promises over ti·aditional solar panels
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`is the reduced maintenance associated with the underlying roof. Traditional solar panels may outlast
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`CONSOLIDATED CLASS ACTION COMPLAINT
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`5
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`Case No . 21-cv-3577-VC (lead case)
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`
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`Case 3:21-cv-03577-VC Document 54 Filed 02/22/22 Page 6 of 26
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`the underlying roof, and thus homeowners must disassemble and re-install an existing solar system
`in order to address any replacement or repairs needed for the underlying roof. Alternatively, some
`roofs may have to be entirely replaced before installing a traditional solar panel system, depending
`on their condition.
`24.
`Tesla also advertises the affordability of the Solar Roof as one of its key features. On
`its website, Tesla claims that the price of the Solar Roof is cheaper than purchasing electricity from
`the power grid: “Power your home at the lowest price per watt of any national provider and take
`control of your monthly electricity bill.” Indeed, Musk drew public attention to the affordability of
`the Solar Roof by stating, “It’s looking quite promising that a solar roof will actually cost less than a
`normal roof before you even take the value of electricity into account. So the basic proposition
`would be, ‘Would you like a roof that looks better than a normal roof, lasts twice as long, costs less
`and by the way generates electricity?’ It’s like, why would you get anything else?”
`25.
`Tesla also markets the Solar Roof as being environmentally friendly. Tesla tells
`consumers they can reduce their carbon footprint with the Solar Roof: “By switching to solar, you
`will be reducing your carbon emissions and environmental impact of energy use.”
`26.
`On its website, Tesla also campaigned against the bad experience of buying a
`traditional roof, which it compared to “buying a car through a dealership,” in which “[i]nitial
`contracts tend to be overly optimistic, and later customers face hidden costs that were never
`mentioned up front.” Tesla promised “transparency and putting the customer in control,” which it
`purportedly accomplished through its “Solar Roof calculator” that “lets homeowners estimate the
`upfront price of the Solar Roof…”
`27.
`By advertising these features, Tesla has attracted considerable consumer interest in
`its Solar Roof, particularly with consumers building or remodeling a home, or already planning to
`replace their existing roof.
`28.
`The purchase of a Solar Roof takes place in several steps. Tesla first provides
`consumers with an early quote for the estimated price of the consumer’s Solar Roof project, which
`ostensibly comprises the price of the Solar Roof (per estimated square foot) and standard
`installation costs; then, after exploring the homeowner’s unique project needs, Tesla offers a
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`CONSOLIDATED CLASS ACTION COMPLAINT
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`6
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` Case No. 21-cv-3577-VC (lead case)
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`
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`Case 3:21-cv-03577-VC Document 54 Filed 02/22/22 Page 7 of 26
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`1 "contract price" which includ es the price of the Solar Roof system (per custom square foot
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`2 measurements) , standard installation costs , and the customer's unique pre- construct ion need s.
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`3
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`Consumers initiate the tran saction by visitin g Tesla 's website and prov idin g Te sla
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`4 with their address and current electr icity usage. In "S tep 1," Tesla perf01ms calculations that
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`5 mea sure the consumer's roof and prov ides a suggested size based on the consume r 's electr icity
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`6 consumpt ion and roof size . In advertising these services, Te sla promises to "re commend a system
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`that maximize s your sav ings based on your average electricity usag e." See Figure 2.
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`Virtual Hom e Assessm ent (Optional)
`Log onto your Tesla Account
`to answer questions
`about your home, finalize your design and track your
`1nstollot1on progress.
`
`Design
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`modeling
`;:,long w,th your feedback.
`
`Permit
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`system. Oepond,ng on your locat,on, th,s may take
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`Site Visit
`or1 c.1tP vic;.1t to confirm
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`
`(Figure 2)
`
`30.
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`After Step 1, Tesla prov ides consumers with an estimated price for the Solar Roof
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`22 based on its initi al mea surement s, along with an option to place a pre-o rd er by pay ing a depo sit.
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`23 Te sla intentionally advert ises a lower estimated pr ice at thi s early phase than what the company
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`24
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`reasonab ly expect s the consumer to pay on the final project in orde r to lure consum ers into m aking
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`a depo sit and begin the project.
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`31.
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`In Step 2 of the process, Te sla offers its "Des ign" and "S ite Visit" services. In the
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`27
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`"D esign" phase, a Tesla technical team manually reviews satellite im ages of the consu mer 's roof
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`28
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`and creates a schemat ic of the solar installation (showing the place ment of the solar tile s and their
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`CONSOLIDATED CLASS ACTION COMPLAINT
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`7
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`Case No. 21-cv-3577-VC (lead case)
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`Case 3:21-cv-03577-VC Document 54 Filed 02/22/22 Page 8 of 26
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`1
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`size). See Figures 2-3. In the "Site Visit" phase, a Tesla representative conducts an in-person
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`2
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`3
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`inspection of the consumer's roof. In adveli ising these serv ices, Tesla explains that, "[p]r ior to
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`installation , we perf01m a site visit to confom no additiona l roof or site repairs are required. " See
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`4 Figure 2.
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`Design
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`Root Remova l
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`Waterproof n g
`
`Tile Installat ion
`
`Attla l imagery an-Cl JO
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`(Figure 3)
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`32.
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`Accord ing to Tesla's advertisements, the purpose of Step 2 is to identify any
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`19 anoma lies or unique shapes in a customer's roof and to recommend an approp ri ate size of the solar
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`20 a.nay (in other words, the amount of electr icity, in kilowatt hours, the Solar Roof can generate on an
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`21
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`average day). Upon review of their project design and customized measurements , customers finalize
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`22
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`their purchase by signing a "So lar Roof Purchase & Home Improvement Agreement " (the "Solar
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`23 Roof Purcha se Agreement"). The Solar Roof Purcha se Agreement contains a consumer's Solar
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`24 Roof project sp ecification s dete1mined during the review phase (includin g the size of the Solar Roof
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`25
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`and pre -construct ion need s) and a contract pri ce, based on tho se sp ecifications.
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`26
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`33.
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`Te sla comp lem ents thi s process with an in-person site visit. The purpose of the in-
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`27 person site visit is to detect any unique repair s needed at the installation location which may not
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`28 have been readily apparent from satellite images .
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`CONSOLIDATED CLASS ACTION COMPLAINT
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`8
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`Case No. 21-cv-3577-VC (lead case)
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`Case 3:21-cv-03577-VC Document 54 Filed 02/22/22 Page 9 of 26
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`34.
`Consumers reasonably rely on Tesla’s representations that the review phase enables
`Tesla to determine the appropriate size and scope of the project and to identify any anomalies in the
`project site which may increase the project’s total cost. Because the Solar Roof Purchase Agreement
`is entered into at or near the conclusion of Tesla’s review phase, customers reasonably rely on the
`contract price to be the final, or nearly final, price for their entire Solar Roof project.
`Tesla Unilaterally and Without Justification Increased the Price of the Solar Roof
`35.
`On or around April 10, 2021, Tesla sent consumers who pre-ordered a Tesla Solar
`Roof an email indicating that it increased the Solar Roof prices and would no longer honor
`consumers’ contracts (the “Price Increase Notice”). The email stated:
`
`
`We have increased the price of Solar Roof and have added adjustments for
`individual roof complexity. Learn More
`
`You will receive an email in the next 1-2 days when your new agreement is ready
`for your review and acceptance before moving forward. If you are no longer
`interested in moving forward with Solar Roof, you can cancel your order by
`logging into your Tesla Account and your deposit will automatically be refunded.
`
`We will be prioritizing customers based on the order in which they accept their
`updated agreements.
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`36.
`Consumers who received the April 10th email had already signed a contract and
`agreed to a final price for the entire Solar Roof installation. These consumers had bargained for
`performance, paid deposits, and were waiting for their installations.
`37.
`In anticipation of the Solar Roof installation (and as instructed by Tesla), many
`consumers had spent thousands of dollars to make accommodations and alterations to their
`property, such as trimming trees to reduce shade on their roof, reenforcing their roof structure in
`anticipation of the increased weight, and converting their power meters as required by their utility
`company. Many consumers had also already begun to obtain financing for their Solar Roof, such as
`by taking out home equity loans.
`38.
`Tesla’s Price Increase Notice imposed significant and material changes to the
`existing project costs. Consumers have reported price hikes that range from 30% up to (and even
`exceeding) 100% of the previous agreed-upon price.
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`CONSOLIDATED CLASS ACTION COMPLAINT
`
`9
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` Case No. 21-cv-3577-VC (lead case)
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`
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`Case 3:21-cv-03577-VC Document 54 Filed 02/22/22 Page 10 of 26
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`39.
`For instance, the publication Electrek interviewed one consumer who entered into a
`contract for a Solar Roof system at a total price of $77,019.22, signed a loan agreement for that
`amount, and spent $5,000 on home improvement preparations.1 On April 10, 2021, Tesla increased
`that consumer’s system price to $118,870.33—over $41,000 beyond the original contract price.
`40.
`Another consumer told the publication The Verge that “he signed a contract in
`February to install the solar roof for $35,000, with an additional $30,000 for the batteries. Later, he
`received a ‘terse email’ from Tesla stating that in several days he would receive a new contract with
`higher prices. He was then told he now owed $75,000 for the solar roof — a 114 percent increase
`— and $35,000 for the batteries.”2
`41.
`In many instances, the Price Increase Notice came just days or weeks before
`consumers’ scheduled installations. Consumers were left with two options: 1) either pay Tesla for
`the massive price hike, or 2) cancel their project, in which they have already invested significant
`time and money.
`42.
`Even worse, in the Price Increase Notice, Tesla implied that the company would
`delay the installation of the project if the consumer did not accept the new terms—and the massive
`price hike—right away. (“We will be prioritizing customers based on the order in which they accept
`their updated agreements.”) Many Solar Roof pre-order customers waited months and even a year
`or more for their installation only to have Tesla threaten them with further delays if they did not
`agree to Tesla’s unilateral new terms.
`43.
`At all times, Tesla has known and understood that it lacks any real competition and
`that its customers lack any alternatives to complete their Solar Roof projects.
`44.
`Before the company issued the Price Increase Notices, Musk revealed that the
`company made “significant mistakes” in its Solar Roof business. In a conference call with investors,
`Musk said Tesla had run into trouble “assessing the difficulty of certain roofs,” and said that the
`
`
` 1
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`James Dow, Tesla hikes solar roof price on contracts signed over a year ago, ELECTREK,
`
`(Apr. 11, 2021), https://bit.ly/3tGAgdR.
`2
`Andrew J. Hawkins, Tesla is burning its solar roof customers with a huge price increase,
`THE VERGE (Apr. 12, 2021), https://bit.ly/2RIVlah.
`
`CONSOLIDATED CLASS ACTION COMPLAINT
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`10
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` Case No. 21-cv-3577-VC (lead case)
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`Case 3:21-cv-03577-VC Document 54 Filed 02/22/22 Page 11 of 26
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`“complexity of roofs varies dramatically.” Musk also admitted that Tesla’s solar energy division is
`still not profitable. Tesla’s solution was to retroactively apply a new base pricing model to all of its
`already-signed contracts.
`45.
`In or around September 2021 and in response to the filing of Plaintiffs’ original class
`action complaints, Tesla again announced new prices for Plaintiffs and the Class Members’ Solar
`Roofs. While Tesla made oral representations that it was reverting the prices for the Class Members
`back to the original contract prices (i.e., pre-April 2021 Price Increase), it has not done so uniformly
`or accurately, and continues to fleece customers with updates to project designs (which require
`higher material and labor costs) and allegedly unforeseen repairs (at further additional cost).
`Moreover, Tesla has failed to compensate Plaintiffs or the Class Members for damages incurred
`while Tesla delayed performance, both in terms of time and/or money.
`46.
`Plaintiffs and the Classes seek to enforce their contracts with Tesla for their
`previously agreed-upon prices of the Solar Roof installation, enjoin Tesla from continuing its unfair,
`deceptive and/or unlawful practices, and for other relief as allowable under the law.
`FACTS SPECIFIC TO PLAINTIFFS
`47.
`Plaintiffs both entered contracts with Tesla for the purchase of a Solar Roof. For
`Plaintiffs, and consumers nationwide, this was a months-long process.
`Plaintiff Amans
`48.
`Plaintiff Amans pre-ordered a Solar Roof and battery backup units from Tesla in
`June 2020.
`49.
`After Tesla representatives inspected Amans’ roof by using satellite images and
`conducted an in-person site visit, Amans signed a final Solar Roof Purchase Agreement on March
`20, 2021 for the total amount of $71,074.42, which included $54,035.69 for the Solar Roof; the
`remainder of the contract price comprised of accessories and pre-construction costs.
`50.
`In anticipation of the Tesla Solar Roof installation, Amans made changes to his
`home. For instance, he converted his electrical plan to accommodate solar—which resulted in a
`higher utility bill without an installed Solar Roof. He also paid for landscaping repairs to limit shade
`to the roof (to optimize the anticipated Solar Roof), such as having trees trimmed and removed.
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`CONSOLIDATED CLASS ACTION COMPLAINT
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`11
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` Case No. 21-cv-3577-VC (lead case)
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`Case 3:21-cv-03577-VC Document 54 Filed 02/22/22 Page 12 of 26
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`Amans did not install a new roof on his home that needed a replacement and he refrained from
`upgrading his home’s windows and skylights due to his anticipated Solar Roof installation.
`51.
`On April 10, 2021—almost 9 months after pre-ordering the Solar Roof—Amans
`received a Price Increase Notice from Tesla. Subsequently, Tesla sent Amans a revised Solar Roof
`Purchase Agreement in the amount of $146,462.22, an increase of 106%. Tesla did not make any
`adjustments to the accessory needs or pre-construction costs, but rather increased the price of the
`Solar Roof product from $54,035.69 to $122,404.46.
`52.
`Amans did not accept Tesla’s price increase and wishes for Tesla to honor its agreed-
`upon price of $71,074.42. Amans also wishes for Tesla to compensate him for any landscaping
`repairs that will have to be re-done due to the delayed installation and his higher utility bills (due to
`his conversion of his electrical plan to accommodate his solar) during the months when he
`reasonably expected to have the Solar Roof installed.
`Plaintiff Malek
`53.
` At the recommendation of his sister, who was a Tesla customer, Plaintiff Babak
`Malek signed a contract with Tesla for the purchase and installation of a solar roof system for his
`residence in West Hills, California in November 2020. Plaintiff Malek put down $100 to secure the
`project.
`54.
`After Tesla completed a more thorough design, Plaintiff Malek signed an adjusted
`contract on January 23, 2021. The contract price for his 18.48 kilowatt solar roof system, covering
`3615.409 square feet, was $64,735 (approximately $3,500 per kilowatt). The contract provided that
`Plaintiff Malek could cancel the contract within five business days of January 24, 2021. Plaintiff
`Malek did not exercise this option.
`55.
`The adjusted contract stated that installation would commence between one week
`and six months from January 23, 2021. In March 2021, two technicians representing Tesla inspected
`Plaintiff Malek’s roof and told him that installation would begin within weeks.
`56.
`In April 2021, Plaintiff Malek’s project was designated as in the “permitting” stage
`on the Tesla website.
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`CONSOLIDATED CLASS ACTION COMPLAINT
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` Case No. 21-cv-3577-VC (lead case)
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`Case 3:21-cv-03577-VC Document 54 Filed 02/22/22 Page 13 of 26
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`57.
`On April 10, 2021, along with other Tesla customers, Plaintiff Malek received an
`email from Tesla requiring that he approve and sign a new contract. On the Tesla website, Plaintiff
`Malek’s new contract showed his total cost as $91,400—an increase of over 40% above his January
`2021 contract price. The website showed Plaintiff Malek’s project as back to the “review and accept
`design” stage.
`58.
`Plaintiff Malek made several attempts to contact project advisors at Tesla to no avail.
`He finally was able to make contact with one advisor, who gave no explanation for the change in
`the contract price other than that it was a “corporate decision.” Since first contacting Tesla in
`November 2020 for construction of a solar roof, Tesla changed advisors on Plaintiff Malek’s project
`five (5) times, further causing delays and breakdown in communications.
`59.
`Plaintiff Malek sent several email inquiries to Tesla to follow up on his contract.
`Upon reading several news articles in spring 2021, Plaintiff Malek discovered that the sudden
`increase in price and delays in installation was happening to all other existing customers.
`60.
`On June 25, 2021, Tesla provided yet another amended sales contract. This contract,
`for the same roof and kilowatt output had increased several thousand dollars, to $95,107. As with
`prior contracts, this contract stated that installation would begin in approximately one week to six
`months from contract signing, providing no acknowledgment that Plaintiff Malek had already been
`waiting several months for installation.
`61.
`Because of the price increase, Plaintiff Malek decided to finance part of the purchase
`directly with Tesla.
`62.
`In July 2021, Tesla notified Plaintiff Malek that his utility provider was limiting the
`size of his solar roof to no more than 16.25 kilowatts. Based on this decreased output, Tesla
`amended the total price to $90,367.44—still much higher than the January 2021 contract price, and
`over $5,560 per kilowatt.
`63.
`Subsequently, in accordance with its purported reversion to the pre-2021 pricing,
`Tesla changed the price of Plaintiff Malek’s solar roof installation to $74,934 for 16 kilowatts
`($4,683 per kilowatt), which is still significantly more than his original price of $64,735.00 for 18.5
`kilowatts.
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`CONSOLIDATED CLASS ACTION COMPLAINT
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`13
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` Case No. 21-cv-3577-VC (lead case)
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`Case 3:21-cv-03577-VC Document 54 Filed 02/22/22 Page 14 of 26
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`64.
`Plaintiff Malek’s residence is considered average in shape/size for his community.
`Despite the typicality of his residence, Defendant Tesla has changed the p