Class action lawsuit against Tesla: Is the company manipulating its odometers?

Class action lawsuit against Tesla: Is the company manipulating its odometers?

New legal turmoil for Tesla: A class action lawsuit has been filed against the electric car manufacturer in California.

The accusation: Tesla is allegedly displaying excessive mileage readings – and thus deliberately shortening warranty claims. The case is being reported by the news agency Reuters, among others, which has seen the statement of claim.

Tesla customer accuses the company of deliberate manipulation

The lawsuit was triggered by Tesla driver Nyree Hinton from Los Angeles. He purchased a used Model Y with around 59,000 kilometers on the odometer in December 2022. According to Reuters, Hinton claims that he used the vehicle regularly for short distances – mostly only about 32 kilometers a day, for example to work or to the gym. Nevertheless, according to the lawsuit, the vehicle showed “an average of 115 kilometers per day.”

What is particularly controversial is that the speedometer running too fast meant that the warranty limit of 80,000 kilometers was reached much earlier – he therefore had to pay for repairs amounting to around US$10,000 himself. When the warranty expired, the odometer suddenly showed too few kilometers, which, according to Hinton, indicates that Tesla may have deliberately manipulated the readings.

Tesla disagrees – and refers to court

According to Reuters, Tesla itself has rejected all of the allegations and requested that the lawsuit be heard in a federal court in Los Angeles (Hinton v. Tesla Inc et al, U.S. District Court, Central District of California, No. 25-02877). The company has not yet issued an official statement on the details of the allegations.

Not the first time: Tesla regularly faces criticism

The new lawsuit is not an isolated case. Back in March 2024, a federal judge in Oakland, California, dismissed another Tesla lawsuit alleging inflated range figures. As Reuters also reports, the judge ruled that affected customers must seek individual arbitration – a class action lawsuit was not admissible.

What the new lawsuit is about

According to Reuters, Tesla is accused in the current lawsuit of using software algorithms to manipulate the mileage of its vehicles. This is said to ensure that expensive warranty work – for example, on the chassis or battery – is covered by the free warranty as little as possible. Hinton bases his claim on several internet forums where other Tesla drivers report similar experiences.

Potential scope: over one million vehicles affected

The class action lawsuit could have far-reaching consequences: according to the statement of claim, the allegation potentially affects over one million Tesla vehicles sold in California since 2020. If the allegations are confirmed, Tesla could face substantial damages – as well as significant damage to its image.

Image:
Tesla Model X vin0002.jpg: Steve Jurvetsonderivative work: Mariordo, CC BY 2.0 https://creativecommons.org/licenses/by/2.0, via Wikimedia Commons

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