As if it didn’t already have enough going on with declining sales and concerning recalls, Tesla has found itself in more trouble after the electric automaker was targeted in a new class-action lawsuit.
According to The Street, Tesla has been accused of deliberately fudging the mileage on its vehicles’ odometers in an apparent attempt to avoid paying for repairs that would normally be covered under warranty.
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The plaintiff in the lawsuit said he bought a used 2020 Model Y Tesla vehicle with 36,772 miles on it. He said he started to notice "peculiar patterns” in mileage while the vehicle was continually having problems with its suspension. He claimed his daily driving habits should have amounted to about 20 miles per day, but his Tesla’s odometer was registering an average of 72 miles per day. As a result, he said Basic Warranty expired way ahead of schedule.
The lawsuit claims that Tesla’s odometer system relies on “predictive algorithms, energy consumption metrics and driver behavior multipliers that manipulate and misrepresent the actual mileage travelled by Tesla vehicles.” And by doing so, the automaker is accelerating the rate of depreciation and the expiration of warranties for its vehicles.
“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,” the lawsuit reads.
As the report points out, other owners have accused Tesla of the same type of mileage manipulation.
The lawsuit is another headache for Tesla as it deals with several other problems. Earlier this month, the company reported a double-digit drop in sales for the first quarter of 2025, which the Associated Press attributed to an aging lineup, increasing competition and backlash from CEO Elon Musk’s political career.
Tesla is also facing another high-profile recall for its high-profile Cybertruck, this time because pieces of the electric truck are flying off while driving.
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As if it didn't already have enough going on
with declining sales and concerning recalls,
00:04.920 --> 00:09.720
Tesla has found itself in more trouble after
the electric automaker was targeted in a new
00:09.720 --> 00:12.189
class action lawsuit.
According to the street,
00:12.479 --> 00:17.559
Tesla has been accused of deliberately fudging
the mileage on its vehicle's odometers in an
00:17.559 --> 00:22.690
apparent attempt to avoid paying for repairs
that would normally be covered under warranty.
00:22.840 --> 00:29.760
The plaintiff in the lawsuit said he bought a
used 2020 Model Y Tesla vehicle with 36,770.
00:29.922 --> 00:35.462
2 miles on it, he said he started to notice
peculiar patterns in mileage while the vehicle
00:35.462 --> 00:38.332
was continually having problems with its
suspension.
00:38.541 --> 00:42.582
He claimed his daily driving habits should have
amounted to about 20 miles per day,
00:43.021 --> 00:47.501
but his Tesla's odometer was registering an
average of 72 miles per day.
00:47.742 --> 00:51.391
As a result, he said his basic warranty expired
way ahead of schedule.
00:51.582 --> 00:56.001
The lawsuit claims that Tesla's odometer system
relies on predictive algorithms,
00:56.422 --> 00:59.622
energy consumption metrics, and driver behavior
multiplier.
00:59.734 --> 01:04.433
That manipulate and misrepresent the actual
mileage traveled by Tesla vehicles.
01:04.484 --> 01:09.643
And by doing so, the automaker is accelerating
the rate of depreciation and the expiration of
01:09.643 --> 01:14.043
warranties for its vehicles.
By tying warranty limits and least mileage caps
01:14.043 --> 01:18.174
to inflated odometer readings, Tesla increases
repair revenue,
01:18.683 --> 01:23.463
reduces warranty obligations, and compels
consumers to purchase extended warranties
01:23.463 --> 01:26.674
prematurely, the lawsuit reads.
As the report points out,
01:26.884 --> 01:30.916
other owners have accused Tesla of the same
type of Mileage manipulation.
01:31.106 --> 01:35.386
The lawsuit is another headache for Tesla as it
deals with several other problems.
01:35.466 --> 01:39.676
Earlier this month, the company reported a
double digit drop in sales for the first
01:39.676 --> 01:45.015
quarter of 2025, which the Associated Press
attributed to an aging lineup,
01:45.545 --> 01:49.875
increased competition and backlash from CEO
Elon Musk's political career.
01:50.026 --> 01:55.666
Tesla is also facing another high profile
recall for its high profile cyber truck this
01:55.666 --> 01:59.265
time because pieces of the electric truck are
flying off while driving.
01:59.739 --> 02:01.879
I'm Ben Munson and this is manufacturing now.
