Mileage Manipulation? Tesla Faces Lawsuit Over Allegedly Inflated Odometer Readings

Tesla is currently under legal scrutiny following a proposed class action lawsuit that accuses the company of artificially inflating odometer readings in its electric vehicles. The plaintiff, Nyree Hinton, claims that these inflated figures cause warranties to expire sooner than they should, allowing Tesla to avoid paying for costly repairs. According to the complaint, Tesla’s odometers don't strictly measure distance driven but instead incorporate factors like energy usage, driving behavior, and algorithmic predictions.

Hinton, who lives in Los Angeles, purchased a 2020 Model Y in December 2022 that had 36,772 miles on it. He alleges the odometer in his car overcounts mileage by at least 15%, noting that the vehicle reported he drove 72 miles daily when, in reality, he rarely exceeded 20. This discrepancy allegedly caused his vehicle’s 50,000-mile warranty to expire prematurely, forcing him to pay $10,000 out-of-pocket for suspension repairs that he believes should have been covered under warranty.

The lawsuit further claims that Tesla benefits financially from these inflated readings by increasing repair revenues, cutting down on warranty-related expenses, and pressuring customers to buy extended warranty plans earlier than needed. Tesla has not publicly responded to the lawsuit and, as of yet, has denied the material allegations in court. The company, based in Austin, Texas, is also known for not maintaining a dedicated media relations department.

Court documents reveal that Hinton is seeking both compensatory and punitive damages on behalf of Tesla owners in California—a group that could potentially include over a million vehicles. The case, which Tesla recently moved from California state court to federal court in Los Angeles, could have significant implications for the automaker if certified as a class action.

This is not the first time Tesla has faced legal trouble over vehicle performance metrics. In another ongoing case, the company has been accused of exaggerating driving ranges. However, in March 2024, a federal judge ruled that claims in that suit must be settled through individual arbitration rather than a class action, potentially limiting broader legal exposure for the company.