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Tesla Confronts Class Action Over Alleged Odometer Manipulation in EVs
Electric vehicle manufacturer Tesla is facing a proposed class action lawsuit alleging the company intentionally inflates odometer readings on its vehicles. The suit claims this practice accelerates the expiration of warranties, potentially saving the Elon Musk-led firm money on repair obligations.
Lawsuit Alleges Inflated Mileage Readings
Plaintiff Nyree Hinton asserts that Tesla odometer calculations are based on factors beyond actual distance traveled, including energy consumption, driver behavior, and “predictive algorithms.” According to the legal filing, these readings do not accurately reflect the true mileage driven by the vehicle.
Hinton stated that the odometer in his 2020 Model Y, acquired in December 2022 with 36,772 miles indicated, registered mileage at least 15% higher than actual miles driven. He supported this claim by comparing it to his historical driving patterns and other vehicles. He noted instances where the odometer recorded 72 miles driven per day when his actual daily commute was at most 20 miles.
Warranty Implications and Repair Costs
Hinton, a resident of Los Angeles, contends that the artificially inflated odometer readings caused his 50,000-mile basic warranty to lapse prematurely. This resulted in him incurring a $10,000 bill for suspension repairs, which he believes should have been covered under the original Tesla warranty.
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Claims of Financial Benefit for Tesla
The lawsuit asserts that “By linking warranty limits and lease mileage caps to exaggerated ‘odometer’ readings, Tesla boosts repair revenue, diminishes warranty responsibilities, and pressures consumers to purchase extended warranties sooner than necessary.”
Tesla Yet to Respond Directly
Tesla and its legal counsel have not immediately issued a public response to requests for comment on Thursday. However, court documents indicate they have formally denied the substantive allegations presented in the complaint. The Austin, Texas-based electric vehicle company is known for not having a dedicated media relations department.
Potential Class Action Scope
Hinton is pursuing compensatory and punitive damages on behalf of Tesla vehicle owners in California. Legal documents suggest this class action could potentially encompass over one million vehicles within the state.
Lawsuit Location and Previous Litigation
Tesla successfully moved the case this month from a California state court to the U.S. District Court in Los Angeles. It is noted that the automaker has previously faced litigation regarding claims of overstated driving ranges for its vehicles.
Prior Case and Arbitration
In March 2024, a federal judge in Oakland, California, ruled that drivers in a similar case concerning driving range claims must pursue their grievances through individual arbitration rather than a collective class action.
Case Details
The case is formally identified as Hinton v Tesla Inc et al, U.S. District Court, Central District of California, No. 25-02877.