Tesla Lawsuit Alleges Automaker Manipulates Odometer Readings to Avoid Warranty Obligations

New to ClassAction.org? Read our Newswire Disclaimer

A proposed class action lawsuit alleges Tesla has fraudulently manipulated odometer readings in its electric vehicles to display greater distances than were actually driven in an effort to dodge or reduce its repair obligations under mileage-capped warranties.

Get the latest open class action lawsuits sent to your inbox. Sign up for ClassAction.org’s free weekly newsletter.

The 30-page Tesla class action lawsuit was filed by a California man who claims to have noticed “peculiar patterns” in mileage accumulation for his used 2020 Tesla Model Y shortly after he began to take the vehicle to a Tesla repair center in February 2023. The man claims in the lawsuit that although his consistent driving routine should have averaged, “by generous estimates,” around 20 miles per day throughout the following months, the vehicle’s average mileage surged to 72.35 miles per day.

The complaint says the plaintiff’s car was covered by Tesla’s basic warranty, which provides bumper-to-bumper coverage for four years or 50,000 miles, whichever occurs first. According to the Tesla lawsuit, the abnormal mileage spike coincided with the plaintiff’s warranty nearing its expiration date, and caused the coverage to expire “well ahead of schedule” once the odometer reached 50,000 miles.

“Now that his Tesla Vehicle’s warranty has prematurely expired, Tesla Inc. refuses to perform any further work under warranty and that all subsequent work would be ‘customer pay service,’” the filing alleges.

Related Reading: Class Action Lawsuit Against Elon Musk Says DOGE Must Pay Taxpayers for Federal Database Access

The lawsuit contends that the plaintiff’s experience with the unexplained mileage surge, particularly leading up to warranty expiration, is not an isolated incident. Per the case, numerous Tesla owners complained online of significant discrepancies between the distances they have driven and what is reported by their odometers.

The case claims the issue stems from Tesla’s odometer system, which apparently does not produce mileage readings based on direct physical measurements of distance traveled. Rather, Tesla odometer readings are estimates of distance traveled derived from predictive algorithms, energy consumption data and driving behavior patterns, the suit says.

Related Reading: Tesla Driving Range Lawsuit Investigation

The complaint argues that Tesla’s reliance on predictive algorithms and other sensor inputs allows the automaker to knowingly inflate distances traveled in its vehicles or, at minimum, tolerate substantial inaccuracies. In either case, Tesla’s odometer discrepancies help bolster its profits at the expense of consumers, the complaint charges.

“[Tesla’s] conduct results in shortened warranty periods, increased repair costs for consumers, and reduced warranty obligations and increased sales of extended warranties – all of which result in financial gain for [the defendant],” the case contends.

The lawsuit looks to represent all California residents who purchased a new or used Tesla vehicle for personal, family or household purposes.

Looking for current class action lawsuits to join? Check out ClassAction.org’s class action lawsuit list.