Sunita Somvanshi
A California Tesla owner has filed a proposed class-action lawsuit claiming the electric carmaker manipulates odometer readings to make warranties expire prematurely, leaving customers with hefty repair bills.
Nyree Hinton, who bought a used 2020 Model Y, claims Tesla’s odometers don’t simply track physical distance traveled. Instead, the lawsuit alleges the company uses “predictive algorithms,” energy consumption metrics, and driver behavior multipliers to artificially inflate mileage readings.
“I noticed my Tesla was recording much higher mileage than my actual driving,” Hinton claims in court documents. His car allegedly showed he was driving 72 miles daily when he says he drove no more than 20.
The lawsuit states his odometer ran at least 15% faster compared to his previous vehicles with the same commute pattern. This discrepancy allegedly caused his 50,000-mile basic warranty to expire “well ahead of schedule,” resulting in a $10,000 suspension repair bill he believes Tesla should have covered.
The allegations hint at a pattern. During the first six months of ownership when the car was still under warranty, Hinton’s vehicle reportedly recorded about 2,217 miles monthly. Once the warranty expired, despite a longer commute, the car displayed just 1,415 miles monthly.
If granted class-action status, the lawsuit could represent over one million Tesla owners in California. It alleges violations of California’s unfair competition and false advertising laws, breach of contract, and unjust enrichment.
Tesla has denied all allegations in the lawsuit, which has been moved to federal court in Los Angeles. CEO Elon Musk has called the lawsuit “idiotic,” according to reports.
Similar Posts
This isn’t Tesla’s only legal battle over accuracy claims. In 2023, the company faced a separate class action alleging it exaggerated driving range estimates. That case was eventually directed to individual arbitration rather than proceeding as a class action.
A Reuters investigation last year found Tesla had allegedly “rigged the dashboard readouts in its electric cars to provide ‘rosy’ projections” about driving range. The report claimed Tesla established a “diversion team” to handle customer complaints about battery range, often claiming diagnostics showed nothing wrong.
Tesla vehicles tie warranty coverage to mileage milestones. Most new Teslas come with a basic warranty covering most components for 50,000 miles, with the drivetrain having separate warranty terms. The drivetrain has a separate, longer warranty.
The lawsuit claims Tesla’s alleged odometer manipulation serves multiple purposes: “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.”
Some Tesla owners have reported similar concerns online. One Reddit user questioned: “Is Tesla inflating odometer to show more range, ding lessors with over miles and duck repairs under warranty?”
Legal experts suggest this case could potentially establish new precedents for regulating odometer technology in modern vehicles as automakers increasingly use software-based systems.
For now, the key questions remain unanswered: Do Tesla’s odometers accurately reflect physical distance traveled? Or are they calculating mileage using other factors? The federal court in Los Angeles will ultimately decide.
