Tesla Accused of Rigging Odometers to Dodge Repairs

Tesla is facing a proposed class action lawsuit accusing the company of inflating odometer readings on its vehicles, potentially cutting short warranty coverage and leaving drivers with major repair bills.

The suit, filed by Los Angeles resident Nyree Hinton, alleges that Tesla’s odometers use algorithms based on energy use and driving behavior, not actual miles driven. According to Hinton, the 2020 Model Y he purchased had its mileage tracking run about 15% faster than reality. That caused his warranty to expire earlier than expected, forcing him to cover a $10,000 repair out of pocket.

The lawsuit claims Tesla benefits financially by using inflated mileage to trigger early warranty expirations, push drivers to buy extended coverage, and increase repair revenue. Hinton is seeking damages on behalf of Tesla owners across California, potentially covering over a million vehicles.

Tesla recently moved the case to federal court in Los Angeles. The company hasn’t commented publicly on the case but has previously denied similar allegations.

This isn’t the first time Tesla has faced legal trouble over vehicle data. The company is also dealing with claims that it exaggerated battery range estimates, a case that was redirected to individual arbitration earlier this year.