Electric car maker Tesla Motors has reached an out-of-court settlement with 126 Norwegian customers who claimed their cars' performance did not match promises made in the firm's marketing.

Lawyers for the owners and the company told the Oslo District Court in a joint letter they wanted to withdraw the case which had been due to start on Monday, a court spokeswoman said.

Kaspar Nygaard Thommessen of Oslo-based law firm Wikborg Rein, who represented the car owners, told Reuters a settlement had been reached in recent days and the case had been resolved.

The Tesla Model S P85D, which the car owners said had a lower horsepower than that stated by Tesla. The company has denied misleading the buyers. Mark Bean

He declined to provide details of the settlement.

Norwegian business newspaper Dagens Naeringsliv (DN) said on Sunday Tesla had agreed to pay 65,000 Norwegian crowns ($10,268) to each car owner, about half of what they demanded, or allow them to choose from alternative options, including car upgrades.