Tesla Inc. is facing a proposed class action lawsuit alleging the company intentionally inflates odometer readings on its electric vehicles, causing warranties to expire prematurely and leaving customers with costly repair bills.
The lawsuit, filed by Los Angeles resident Nyree Hinton, claims Tesla’s odometers rely not only on mileage but also factor in energy consumption, driver behavior, and predictive algorithms—resulting in faster-advancing mileage counts.
Hinton alleges the odometer on his 2020 Model Y, which he purchased in December 2022 with 36,772 miles, was over-reporting distance by at least 15%. He noted that while he drove no more than 20 miles daily, the car recorded up to 72 miles per day.
As a result, Hinton claims his vehicle’s 50,000-mile basic warranty expired significantly ahead of schedule, leaving him with a $10,000 suspension repair bill that he believes should have been covered by Tesla.
“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 complaint states.
The lawsuit, which could affect more than 1 million Tesla vehicles in California, seeks both compensatory and punitive damages. Tesla has denied the material allegations but has not issued a public comment. The case was recently moved to federal court in Los Angeles.
This is not the first time Tesla has faced legal scrutiny over its vehicle performance metrics. In a separate case concerning alleged exaggeration of driving ranges, a federal judge in March 2024 ruled that Tesla owners must pursue those claims through individual arbitration rather than a class action.
