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Tesla accused of speeding up odometers so they fall out of warranty faster: lawsuit
TeslaTesla(US:TSLA) New York Postยท2025-04-17 23:10

Core Viewpoint - Tesla is facing a proposed class action lawsuit alleging that the company manipulates odometer readings on its electric vehicles to accelerate the expiration of warranties, thereby saving on repair costs [1][3]. Group 1: Allegations and Claims - The plaintiff, Nyree Hinton, claims that the odometer readings on his 2020 Model Y are at least 15% fast, leading to a misrepresentation of actual mileage driven [2]. - Hinton asserts that this discrepancy caused his 50,000-mile basic warranty to expire prematurely, resulting in a $10,000 repair bill for suspension issues that he believes Tesla should cover [3]. - The lawsuit alleges that by linking warranty limits and lease mileage caps to inflated odometer readings, Tesla increases repair revenue and reduces warranty obligations, compelling consumers to purchase extended warranties sooner than necessary [3]. Group 2: Legal Proceedings and Scope - Hinton is seeking both compensatory and punitive damages for Tesla drivers in California, which could potentially affect over 1 million vehicles [4]. - The lawsuit has been moved to federal court in Los Angeles from a state court, indicating a significant legal escalation [6]. - Tesla has previously faced litigation regarding the inflation of vehicle driving ranges, and a federal judge ruled that claims in that case must be pursued through individual arbitrations rather than as a class action [6].