A class action lawsuit has been proposed against Tesla because the company modifies electric vehicle odometers to avoid costly warranty repairs. Nyree Hinton filed a lawsuit against Tesla for using their odometers to monitor data beyond mileage through energy consumption and driver behavior analysis and predictive algorithm processing, which results in inaccurate distance readings.
Hinton purchased his 2020 Tesla Model Y in December 2022 from Los Angeles, where the vehicle odometer showed 36,772 miles. His driving records showed he only traveled 20 miles daily, but the odometer displayed 72 miles per day, exceeding the expected mileage by at least 15%. The premature failure of his warranty because of this incident made him responsible for paying $10,000 to repair his suspension system.
The complaint reveals that Tesla benefits financially through false mileage readings because they earn more repair revenue from out-of-warranty customers while reducing their warranty expenses and compelling customers to buy extended warranties. The lawsuit filed by Hinton demands compensatory and punitive damages for the entire California Tesla owner population, which exceeds one million people.
The company refused all essential allegations before it moved its lawsuit to Los Angeles federal court. The company does not provide any public information about this issue.
The company faced legal challenges regarding vehicle performance measurement during previous periods. The March 2024 court ruling forced a lawsuit against Tesla for false range claims into private arbitration, thus preventing collective legal action.
The legal case known as Hinton v. The legal case known as Tesla Inc. et al. operates under U.S. District Court, Central District of California, No. 25-02877. The legal decision in this case will profoundly affect Tesla’s business operations as an electric vehicle manufacturer.
