Class-Action Lawsuit Accuses Tesla of Manipulating Odometers to Avoid Warranty Obligations
A recent class-action lawsuit against Tesla is accusing the company of inflating its odometer readings to avoid fulfilling warranty agreements, according to The Street.
Filed Feb. 7, the lawsuit argues that Tesla manipulates its odometers to overestimate the number of miles traveled as a way to prematurely void its warranties, which are capped by mileage.
Specifically, the lawsuit alleges that the odometer system bases its number of miles traveled on predictive algorithms, energy consumption metrics, and driver behavior multipliers that allegedly provide an inaccurate mileage.
“In so doing, Defendants can, and do, accelerate the rate of depreciation of the value of Tesla vehicles and also the expiration of Tesla vehicle warranties to reduce or avoid responsibility for contractually required repairs as well as increase the purchase of its extended warranty policy,” reads the lawsuit.
One plaintiff, the owner of a used 2020 Tesla Model Y with 36,772 miles, had noticed something off about how his vehicle was tracking mileage. At the same time, he had been dealing with suspension issues in his vehicle.
Despite a consistent driving routine, the Model Y owner saw a random spike in his average daily miles driven. He claims that his driving routine should have averaged 20 miles per day, but the vehicle reported a much higher number of 72.35 miles per day.
This led to his Basic Warranty expiring much earlier than estimated. However, after the warranty expired, he began driving longer commutes—and allegedly saw the vehicle’s reported average daily miles inexplicably begin to decrease.
The lawsuit is accusing Tesla of systemic inaccuracies and fraudulent business practices as a way to prematurely void warranties and avoid paying for necessary repairs or replacements on parts it manufactures or supplies.
“By tying warranty limits and lease mileage caps to inflated ‘odometer’ readings, Tesla increases repair revenue, reduces warranty obligations, and compels consumers to purchase extended warranties prematurely,” states the lawsuit.
