Tesla is facing a new class action lawsuit in the United States. The allegation? That Tesla vehicles may be intentionally overreporting mileage – potentially pushing owners out of warranty coverage earlier than they should be. This means that many Tesla drivers may have been left liable for costly repairs that should have been covered.
The claim accuses the electric vehicle giant of manipulating odometer readings using internal algorithms tied to energy usage, driving patterns, and predictive data, rather than actual distance travelled. If true, this practice could have serious financial consequences for owners – and even bigger legal ones for Tesla.
The allegations: How much is too much?
In the lawsuit, California resident Nyree Hinton claims that on a daily route of just 20 miles – his Tesla recorded as much as 72 miles. Under U.S. regulations, odometers are legally allowed a margin of error of around 4%. But a 360% increase – as Hinton alleges – would be well beyond that.
Tesla’s standard basic warranty lasts four years or 50,000 miles, whichever comes first. Hinton says he was hit with a $10,000 repair bill for suspension damage, which would have fallen under warranty had his odometer not advanced so aggressively.
Why UK Tesla drivers should be paying attention
Elon Musk has blasted the Tesla odometer lawsuit as “idiotic”. But odometer fraud is no small matter.
In the U.S. it’s a criminal offence that can result in fines of up to $250,000 per vehicle, and according to reports, Tesla sold over a million Model Y units in 2023 alone. This has left some reporters questioning whether we are looking at a scandal as big as dieselgate.
While this lawsuit is currently limited to the U.S., the core issue – how vehicle data is collected, processed, and used – is a global one.
Tesla vehicles in the UK rely on the same proprietary systems and algorithms. If a pattern of odometer inflation is proven in U.S. courts, it could raise serious questions about warranty practices and consumer rights in other countries, including here in the UK.
Register for updates
We’re closely monitoring this case. At present, no claim has been launched in the UK, but that may change as more information comes to light.
If you’re a Tesla driver in the UK and are concerned about how your vehicle’s mileage is being recorded, you can register your interest to stay informed. Should legal action become viable here in the UK, we’ll make sure you’re the first to know.
