Tesla owners affected by the failure of the Multi-Memory-Card (eMMC) are receiving refund checks as a part of the terms the automaker outlined to replace the part.
In January 2021, the NHTSA requested that Tesla repair 158,000 Model S vehicles built between 2012 and 2018 and Model X vehicles from 2016 to 2018. The reasoning for the request was that the eMMC card could fail from routine wear-and-tear. The failure could cause loss of the rearview camera display, defrost/defog control settings, and exterior turn signal lighting, reducing visibility and increasing the risk of a crash.”
Tesla obliged to the request, recalling 134,951 Model S and Model X vehicles on February 2nd. “Tesla, Inc. (Tesla) is recalling certain 2012-2018 Tesla Model S and 2016-2018 Model X vehicles with a center display equipped with an NVIDIA Tegra 3 processor. When the 8GB eMMC NAND flash memory device for the center display reaches lifetime wear, the eMMC controller will no longer be able to maintain the integrity of the filesystem, causing a failure in some of the center display functions,” the NHTSA wrote on its website.
In early March, Tesla started contacting owners whose vehicles fit the description of the recall so that a local Service Center could repair the vehicles. The email obtained by Teslarati noted that if owners had already had the replacement completed, they could be reimbursed.
Tesla wrote in the email:
“If you previously paid out-of-pocket for the specific pat and condition covered by the recall, and the repair was within the 8GB eMMC Recall period, you may be eligible for reimbursement.”
Owners then had to submit a reimbursement form, and Tesla would review it to determine whether the owners were eligible for repair. If the repair was performed after Tesla had set up a service appointment, it was completed at no cost.
Now, owners are receiving their reimbursement checks.
Reddit u/91Jammers in the r/TeslaMotors subreddit received their check just a few days ago in the amount of $1,670.50. However, several owners within the comment section indicate that the process wasn’t that easy for them. Several owners indicate that Tesla told them they didn’t qualify for an upgrade for several reasons. Some said MCU2 upgraders, regardless of “reason for upgrade,” didn’t receive a reimbursement check. Others said MCU1 failures that showed “all of the indicators of the eMMC issue” were also denied a refund without any clarification.
The recall repairs began on March 30, 2021, according to the NHTSA document that announced the recall. The same issue with the same vehicles was also reported in China in February, and Tesla worked to announce a recall on those vehicles as well.
If you did or did not receive a reimbursement check after having your eMMC repaired, let me know at joey@teslarati.com or @KlenderJoey on Twitter.
News
Tesla Giga Berlin makes a statement of solidarity amid IG Metall conflict
The display comes as tensions between Tesla and IG Metall continue to escalate.
Tesla Giga Berlin is sending a strong message of solidarity amid its ongoing legal dispute with German union IG Metall.
In a post on social media platform X, Giga Berlin plant manager André Thierig shared an image of the facility’s lobby covered with a large banner that reads: “Progress. Innovation. Success.” He added that the slogan reflects what the facility has stood for since Day One.
“Our lobby at Giga Berlin covered in a huge banner these days. Progress. Innovation. Success – this is what we stand for since we started production in 2022 and how we will go into our future!” Thierig wrote in his post on X.
The display comes as tensions between Tesla and IG Metall continue to escalate.
The dispute began after Tesla accused a union representative of secretly recording a works council meeting at Giga Berlin. Tesla stated that it filed a criminal complaint after the alleged incident. Police later confirmed they had seized a computer belonging to an IG Metall member as part of their investigation.
“What has happened today at Giga Berlin is truly beyond words! An external union representative from IG Metall attended a works council meeting. For unknown reasons he recorded the internal meeting and was caught in action! We obviously called police and filed a criminal complaint!” Thierig wrote on X at the time.
IG Metall denied the accusation and characterized Tesla’s move as an election tactic ahead of upcoming works council elections. The union subsequently filed a defamation complaint against Thierig. Authorities later confirmed that an investigation had been opened in connection with the matter.
Giga Berlin began production in 2022 and has since become one of Tesla’s key European manufacturing hubs, producing the Model Y, the company’s best-selling vehicle. The facility has expanded capacity over the past years despite environmental protests, labor disputes, and regulatory scrutiny.
Energy
Tesla Megapack Megafactory in Texas advances with major property sale
Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet.
Tesla’s planned Megapack factory in Brookshire, Texas has taken a significant step forward, as two massive industrial buildings fully leased to the company were sold to an institutional investor.
In a press release, Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet. The properties are 100% leased to Tesla under a long-term agreement and were acquired by BGO on behalf of an institutional investor.
The two facilities, located at 100 Empire Boulevard in Brookshire, Texas, will serve as Tesla’s new Megafactory dedicated to manufacturing Megapack battery systems.
According to local filings previously reported, Tesla plans to invest nearly $200 million into the site. The investment includes approximately $44 million in facility upgrades such as electrical, utility, and HVAC improvements, along with roughly $150 million in manufacturing equipment.
Building 9, spanning roughly 1 million square feet, will function as the primary manufacturing floor where Megapacks are assembled. Building 10, covering approximately 600,000 square feet, will be dedicated to warehousing and logistics operations, supporting storage and distribution of completed battery systems.
Waller County Commissioners have approved a 10-year tax abatement agreement with Tesla, offering up to a 60% property-tax reduction if the company meets hiring and investment targets. Tesla has committed to employing at least 375 people by the end of 2026, increasing to 1,500 by the end of 2028, as noted in an Austin County News Online report.
The Brookshire Megafactory will complement Tesla’s Lathrop Megafactory in California and expand U.S. production capacity for the utility-scale energy storage unit. Megapacks are designed to support grid stabilization and renewable-energy integration, a segment that has become one of Tesla’s fastest-growing businesses.
News
Tesla Sweden strikers see tax issues over IF Metall union error
To address the issue, IF Metall is encouraging Tesla strikers to return the refunded tax amounts to the union.
A tax correction is set to return two years of income tax payments to Tesla strikers in Sweden, after authorities determined that conflict compensation during a labor dispute should not have been taxed.
The issue is caused by a decision by IF Metall to treat strike compensation for Tesla workers as taxable income during the ongoing labor dispute with Tesla Sweden. That approach has now been reversed following guidance from the Swedish Tax Agency.
Strike compensation is typically tax-free under Sweden’s Income Tax Act, as noted in a report from Dagens Arbete (DA). However, two years ago, IF Metall’s board decided to classify payments to Tesla strikers as taxable.
“We did it to secure SGI, unemployment insurance and public pension. Those were the risks we saw when the strike had already dragged on,” Kent Bursjöö, financial manager at IF Metall, stated.
According to Bursjöö, the union wanted to ensure that members continued to register earned income with the tax agency, protecting benefits tied to income history. At the end of January, however, the Swedish Tax Agency informed the union that compensation during a labor dispute must be tax-free.
“Of course, we knew that it could be tax-free. But we clearly didn’t know that it couldn’t be taxable,” Bursjöö said.
Following discussions with auditors and tax authorities, IF Metall began correcting the payments. As a result, two years of paid income tax will now be credited back to the affected strikers’ tax accounts. The union will also recover previously paid employer contributions.
However, the correction creates secondary effects. Since the payments will now be treated as tax-free, pension contributions tied to those earnings will be withdrawn, potentially affecting state pension accrual and income-based benefits such as parental or sickness benefits.
To address this, IF Metall is encouraging members to return the refunded tax amounts to the union. In exchange, the union plans to pay 18.5% into occupational pensions on their behalf. “Otherwise, it will be a form of overcompensation when they get the tax paid back,” Bursjöö said.
That being said, the IF Metall officer acknowledged that the union’s legal ability to reclaim the funds from its improperly paid Tesla Sweden strikers is limited. “The legal possibilities are probably limited, from what we can see. But we assume that most people see the value of securing their pension,” Bursjöö said.
Tesla Giga Berlin makes a statement of solidarity amid IG Metall conflict
Tesla Megapack Megafactory in Texas advances with major property sale
