Lawsuit Accuses Tesla of Alleged Odometer Fraud
Tesla Faces Class Action Lawsuit Over Alleged Odometer Manipulation
A class action lawsuit in California is accusing Tesla of manipulating odometer readings on its vehicles, leading to inflated mileage figures and voided warranties.
At the heart of the lawsuit is Nyree Hinton, a Tesla owner who purchased a used 2020 Model Y in December 2022 with an odometer reading of 36,772 miles. However, Hinton noticed "peculiar patterns" of abnormal spikes in mileage, with the vehicle allegedly beginning to log an average of over 72 miles per day, pushing it past the 50,000-mile limit of Tesla's Basic Vehicle Limited Warranty.
The lawsuit argues that Tesla's odometer system estimates mileage using predictive algorithms that factor in energy consumption and driver behavior. This, the lawsuit claims, allows Tesla to overstate the distances traveled in its vehicles, potentially shortening warranty periods and reducing repair obligations.
The lawsuit further alleges that this practice is a calculated effort to reduce warranty-related costs and increase profit margins. The lawsuit also argues that systemic inaccuracies violate consumer protection laws and undermine trust in the brand.
The lawsuit primarily involves Tesla’s popular models, including the Model 3 and Model Y, with complaints from both owners and lessees across California. The class action could potentially affect more than 1 million vehicles in California registered between 2016 and 2024, including those with Full Self-Driving (FSD) features for which customers opted out.
Tesla owners on platforms like Reddit have independently flagged odometer inaccuracies consistent with these allegations. The lawsuit seeks damages for all California residents who purchased or leased a Tesla vehicle for personal use.
As of now, the lawsuit is not yet verified in court, and Tesla has not publicly commented on the matter. The lawsuit can be found on ClassAction.org. This development marks a significant legal challenge for Tesla, as it faces growing scrutiny over its odometer reporting and its potential financial consequences for consumers.
Technology plays a crucial role in the class action lawsuit against Tesla, as the odometer system in question uses predictive algorithms to estimate mileage. The lawsuit alleges that these algorithms may be manipulated by Tesla, leading to inflated mileage figures and potential shortening of warranty periods, which is a concern for consumers who rely on technology to provide an accurate reading of their vehicle's mileage.
