Tesla has settled its case with 126 Norwegian Tesla car owners out of court. The buyers had sued the automaker for false advertising.

The auto maker claims that its Model S P85D can give 691 hp using its two electric motors. However, the Norwegian customers refuted the claim stating that the car only generates around 470 hp.

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Both the company and the car owners agreed to withdraw the case to the Oslo District Court. The case was due to begin on Monday. The car owners were represented by Oslo-based law firm Wikborg Rein which told Reuters about reaching a settlement. However, no details of the settlement were provided.

Reuters quoted Norwegian business newspaper Dagens Naeringsliv, which reported that Tesla paid $7,700 to each car owner to settle the case. The car owners are believed to have demanded twice the amount. Tesla has not issued any statement in this regard. The owners are also likely to be given the option to choose upgrades or accessories.

The car maker no longer offers its Model S PD85 in Norway. The country is widely considered to be one of the most attractive markets for eco-friendly electric cars. However, according to a report released by Road Traffic Information Council, the registration for new Tesla cars in Norway declined 24 percent during the first 11 months of 2016, in comparison to the same time-period of 2015.

Tesla had earlier tried to mitigate the damages by using technological specifications. Tesla's Chief Technical Officer JB Straubel countered the criticism stating that electric motors cannot be directly compared to internal combustion engines.

The model was launched in 2014 with the company CEO Elon Musk claiming, "It's like taking off from an [aircraft] carrier deck, it's like having your own roller-coaster."