UPDATE: Tesla Reworks Gag Clause for Customers

Tesla Motors Inc. has rephrased a customer nondisclosure agreement said to infer that owners of its electric cars were bound not to report possible safety defects if they accepted a discount on out-of-warranty repairs.

The company “goodwill agreement” form now emphasizes that signers can still report their experience to the National Highway Traffic Safety Administration. Last week the agency warned that telling owners not to reveal possible safety defects is “unacceptable” under any circumstances.

The brouhaha arose last week over reports that Tesla offered to pay half the $3,100 bill to repair a failed front suspension in a Model S electric sedan. The payment was contingent on the owner agreeing not to discuss details about the offer.

CEO Elon Musk insists the car’s suspension is not defective. On Friday he said NHTSA concurred after conducting a preliminary investigation. He adds that a greater concern is that 37 of 40 complaints that were received by NHTSA are “fraudulent” because they report a false vehicle location or the wrong vehicle identification number.