Tesla is facing a lawsuit alleging that the automaker is falsifying odometer readings to increase its repair revenue by avoiding warranty coverage and forcing customers to purchase extended warranties early.
Image source: tesla.com
In December 2022, Nyree Hinton purchased a 2020 Tesla Model Y with 36,772 miles (59,179 km) on the clock, meaning it was covered under a 50,000-mile (80,467 km) warranty. Over the next few months, the California-based financial analyst made five trips to the shop to fix a recurring suspension issue. After his fifth trip, Hinton noticed that his car was averaging more miles on the same trips: from December 14, 2022, to February 6, 2023, he averaged 55.54 miles (89.38 km) per day, but from March 26, 2023, to June 28, 2023, the odometer dropped to 72.53 miles (116.73 km) on the same route. The owner’s previous cars averaged 6,086 miles (9,794 km) over six months, while the Model Y averaged 13,228 miles (21,288 km), or 117 percent more.
By July, the odometer had surpassed 50,000 miles. Then Hinton learned that Tesla had recalled the cars due to a suspension issue that affected his car. He went to the shop for the sixth time in January 2024 and was told he would have to pay for the work because the warranty had expired and he was not covered by the recall. He refused to have the car repaired. In October, the suspension finally fell off the car and it had to be towed to a shop, where the repair was priced at $10,000. A company representative said all repairs were covered by the one-year warranty; the suspension could have been repaired for free in January.
The lawsuit against Tesla alleges that instead of mechanical or electronic systems to measure distance traveled, the vehicles use “predictive algorithms, energy consumption metrics, and driver behavior factors that manipulate and distort Tesla’s actual mileage.” This causes the warranty to expire earlier than it should. Hinton is asking for class action status so other Tesla owners can join in. He’s not the only Tesla owner to have noticed the issue: A Reddit user reported that his 70-mile trip was showing up as 90 miles; and a user on a Tesla forum reported that a 112-mile trip was showing up as 188 miles.