Germany's Federal Court of Justice (BGH) has ruled that a driver whose brand-new Tesla Model Y was wrecked in an accident that was not his fault can recover the price of an equivalent new car from the other driver's insurer. He cannot recover the €8,650 more he spent on a Model Y Performance because an identical car would have taken months to arrive. The judgment, case VI ZR 47/26, was handed down on 29 September 2026 and published on 30 October, Legal Tribune Online reported.
The case
The owner bought a new Model Y Long Range (378 kW) for €58,920. A few days later, on 26 September 2022, it was badly damaged in an accident for which the other driver was liable. Two days after the accident he bought a new Model Y Performance (393 kW) for €67,570. An identical Long Range ordered then would, he said, have arrived only in December 2022 or January 2023. The other driver's liability insurer paid €58,920, and he sued for the difference.
He lost at the Hildesheim Regional Court in February 2024 and at the Celle Higher Regional Court in February 2026. The BGH has now dismissed his final appeal.
What the court decided
| Question | The BGH's answer |
|---|---|
| Can the owner claim a new car? | Yes, if the car had no more than 1,000 km, was badly damaged, and he buys an equivalent new one |
| How is "equivalent" judged? | Objectively, by economic value, which the price reflects |
| Does the Performance's shorter range make it worth less? | No: range is already in the price, and his personal priorities do not count |
| Does a long wait justify a pricier car? | No: a rental car, an interim car or loss-of-use compensation covers the wait |
The Performance cost about 15% more, and the courts took that as its objective extra value. A car's price, the BGH wrote, reflects how the market values all of its properties, range included. The owner argued that the car was worth less to him because it had less range and cost more to insure, to charge and to fit with tyres. That failed for the same reason. If particular properties of the damaged car matter to the owner, the judges said, he has to buy a replacement that has them.
He also argued that buying a car in stock had saved the insurer months of rental costs. The court accepted that this may have made economic sense overall, but said it does not change the rules on damages. Whether to settle a claim that way is for the other side and its insurer to decide.
What it means for Tesla owners
The new-car rule itself stands. Within the first 1,000 km, a badly damaged car can be replaced with a new one instead of being repaired or valued as used. The ceiling, though, is the price of an equivalent car. An owner who wants a different version because it can be delivered sooner should agree it with the insurer first, or expect to pay the difference. The wait is covered by a rental car or a daily loss-of-use payment, not by an upgrade.
For Tesla owners the question is not academic. In this case the same car would have taken three to four months to arrive, and Teslas are written off more often than other cars of the same age, according to one US vehicle-history company. The ruling concerns a claim against the at-fault driver's liability insurer under German law. What an owner's own comprehensive policy pays depends on that policy's terms.