The Oslo District Court had been due to examine a lawsuit filed by some 130 owners of Tesla S P85D, a sedan with one of the fastest accelerations in the world.
The plaintiffs complained the real power of their cars was "only" 469 horsepower and not 700 horsepower as promised by Tesla.
But both sides reached an out-of-court settlement, lawyers for the plaintiffs said. Tesla refused to comment.
Financial daily Dagens Naeringsliv reported on Sunday that Tesla would pay 65,000 kroner (€7,260, $7,710), half the amount the car owners had demanded, or offer other compensation in the form of a voucher, a battery upgrade or new wheels, sometimes accompanied by a sum.
The plaintiffs' lawyers refused to confirm this information.
Norway is the second largest market in the world for Tesla after the United States, due to its generous state-funded measures in favour of electric cars, including tax exemptions and free city tolls and public parking.