AHDOOT vs TESLA, INC.

25CV156671: AHDOOT vs TESLA, INC. 09/09/2026 Hearing on Motion to Compel Arbitration filed by TESLA, INC. (Defendant) CRS# 375436018563 in Department 19

Tentative Ruling - 09/05/2026 Joscelyn Jones

The Motion to Compel Arbitration filed by TESLA, INC. on 04/17/2026 is Granted.

The Motion to Compel Binding Arbitration by Defendant Tesla Inc. is GRANTED.

Plaintiff entered a Motor Vehicle Order Agreement (“the Agreement”) in which he agreed to arbitrate “any dispute arising out of or relating to any aspect of the relationship between you and Tesla”. The claims asserted in this case fall within the scope of that arbitration agreement. Tesla moves to compel arbitration in accordance with the arbitration provision of the Agreement.

The Agreement contains an opt-out provision. It is undisputed that Plaintiff did not opt out of the Agreement.

Plaintiff files a declaration acknowledging that he “participated” in the process of ordering and purchasing his vehicle but stating that he doesn’t recall being presented with an arbitration agreement when he did so. Tesla presents unrebutted evidence (the declarations of its Manager of Business Resolution Raymond Kim) that when Plaintiff used Defendant’s website to order his vehicle, Plaintiff necessarily clicked the “Place Order” button. Right above the “Place Order” button was text informing Plaintiff that by placing the order, he was agreeing to the terms and conditions of the Agreement. The text contained a hyperlink which, if clicked, opened a window containing the text of the Agreement, including the arbitration provision.

Defendant has presented prima facie evidence of the existence of an agreement to arbitrate the claims alleged in this case. The burden therefore shifted to Plaintiff to prove that he did not enter into an arbitration agreement with Defendant. (See Espejo v. Southern California Permanente Medical Group (2016) 246 Cal.App.4th 1047, 1059-1060.) Plaintiff presents evidence that he “personally participated” in the process of ordering his vehicle online but does not “recall” clicking on any hyperlink next to the “Place Order” button or opening or reading the Agreement before placing his order.

Defendant presents undisputed evidence that its website included text immediately adjacent to the “Place Order” button informing Plaintiff that by placing the order, he was agreeing to the terms and conditions of the Agreement, the text of which was readily accessible by clicking a hyperlink immediately adjacent to the “Place Order” button. Plaintiff does not deny any of these facts; instead, he states only that he does not recall attempting to read the Agreement by clicking on the hyperlink prior to placing the order.

Based on the evidence presented, the Court determines that Defendant has established by a preponderance of the evidence that by clicking the “Place Order” button, Plaintiff entered into the Agreement with Defendant, including the arbitration provision.

Plaintiff alternatively argues that the motion should be denied because the Agreement is unconscionable. In order to oppose enforcement of an arbitration agreement based on 25CV156671: AHDOOT vs TESLA, INC. 09/09/2026 Hearing on Motion to Compel Arbitration filed by TESLA, INC. (Defendant) CRS# 375436018563 in Department 19 unconscionability, Plaintiff must show that the agreement is both procedurally and substantively unconscionable. (See, e.g., Sanchez v. Valencia Holding Co. (2015) 61 Cal.4th 899, 910.) Plaintiff fails to do so.

Plaintiff’s opposition brief argues that the arbitration agreement was procedurally unconscionable because it was a contract of adhesion and he had no opportunity to negotiate its terms, which were not adequately disclosed. However, Plaintiff did not present any competent evidence attesting that he had no opportunity to negotiate the terms of the Agreement or that he was surprised by any language in the Agreement, including the arbitration provision. Nor could Plaintiff credibly claim to be surprised by the arbitration provision, which appears on page 3 of the 4 page Agreement, separated from the other text of the Agreement by a box, and following a boldface heading stating “Agreement to Arbitrate”.

Furthermore, the Agreement expressly gave Plaintiff the right to opt out of the arbitration agreement, but he did not do so. An arbitration agreement is not adhesive if there is an opportunity to opt out of it. (Mohamed v. Uber Technologies Inc. (9th Cir. 2016) 848 F.3d 1201, 1211.)

This case is distinguishable from Sanchez, supra, 61 Cal.4th at 913-915, because in Sanchez the defendant did not dispute that the contract at issue was adhesive, leading the court to conclude that plaintiff had demonstrated “some degree of procedural unconscionability.” Here, Tesla has not conceded that the Agreement was adhesive. Moreover, the Agreement expressly gave Plaintiff the opportunity to opt out of the arbitration provision, but Plaintiff did not avail himself of that opportunity.

Because Plaintiff has not demonstrated that the Agreement or its arbitration provision is procedurally unconscionable, the Court does not need to reach the issue of whether the Agreement is substantively unconscionable. However, Plaintiff fails to identify any substantively unconscionable provision of the Agreement.

Plaintiff is ordered to arbitrate the claims asserted in this case, before the American Arbitration Association, pursuant to the arbitration provision contained in Plaintiff’s Motor Vehicle Order Agreement. This action is STAYED pending completion of the parties’ arbitration, pursuant to Code of Civil Procedure § 1281.4.

The Initial Case Management Conference currently scheduled for September 15, 2026 is CONTINUED to September 14, 2027 at 3:00 p.m. in Department 19. By no later than August 27, 2027, the parties shall file a joint status report indicating whether the arbitration has been completed, or if not, the anticipated completion date.

The Initial Case Management Conference scheduled for 09/15/2026 is continued to 09/14/2027 at 03:00 PM in Department 19 at Rene C. Davidson Courthouse.