Tesla is under fire with a proposed class action lawsuit alleging that the company deliberately inflates the odometer readings on its electric vehicles. This allegedly leads to warranties expiring prematurely, leaving consumers with hefty repair bills.
The lawsuit, filed by a Los Angeles resident, accuses Tesla of manipulating odometer readings by factoring in energy consumption, driving behavior, and predictive algorithms, resulting in faster mileage accumulation.
The lawsuit, filed by Nyree Hinton, a Los Angeles resident, centers on Tesla’s 2020 Model Y, purchased in December 2022.
Hinton claims the odometer on his car, which initially showed 36,772 miles, was over-reporting by at least 15%. Despite driving no more than 20 miles per day, Hinton states his car recorded as much as 72 miles per day.
As a result of the inflated mileage readings, Hinton argues that the 50,000-mile basic warranty expired much earlier than expected.
The premature expiration led him to face a $10,000 suspension repair bill, which he believes Tesla should have covered under its warranty.
The lawsuit claims that Tesla uses inflated odometer readings to increase repair revenue and reduce warranty obligations.
By artificially accelerating the mileage count, Tesla allegedly encourages consumers to purchase extended warranties or face repair costs outside the basic warranty coverage.
The lawsuit asserts that this practice affects more than 1 million Tesla vehicles in California.
Tesla has denied the allegations but has not provided any further comment on the matter.
The case, which was originally filed in California state court, has now been moved to federal court in Los Angeles. The plaintiffs are seeking both compensatory and punitive damages.
This is not the first time Tesla has faced legal challenges related to its vehicle performance metrics.
Earlier in 2024, a federal judge ruled that a separate case regarding the alleged exaggeration of Tesla’s driving range would have to be pursued through individual arbitration rather than a class action.
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