Lawsuit accuses Tesla of inflating odometers to avoid warranty payments

A lawsuit filed against Tesla in California accuses Elon Musk’s electric vehicle company of purposely speeding up odometer readings on its cars to avoid paying for repairs covered under warranties.

The plaintiff in the lawsuit, Nyree Hinton, is a Tesla customer who bought a used Model Y in December 2022. The lawsuit seeks class action status in California, which could potentially cover more than 1 million Teslas. 

Tesla odometer readings lawsuit

According to the lawsuit, when Hinton bought his Tesla in Marietta, Georgia, the odometer showed 36,772 miles. Hinton reportedly got the basic warranty that covered repairs for 50,000 miles or Sept. 5, 2024, the supplemental warranty that covered the vehicle for five years or 60,000 miles, and the battery and drive unit warranty that covered it for 120,000 miles or September 2028.  

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In March 2023, Hinton started noticing "peculiar patterns" in the mileage accumulation, averaging 55.5 miles a day between December 12, 2022 and Feb. 6, 2023. Hinton claims he had a consistent driving routine from January 2023 to June 2023 that included a short commute to work and occasional visits to the gym and local restaurants, "which should have averaged, by generous estimates, 20 miles per day," the lawsuit states. 

FILE - The odometer of a Tesla Motors Inc. Roadster electric sports car is seen in San Jose, California, U.S., on Thursday, June 2, 2011. (Photographer: David Paul Morris/Bloomberg via Getty Images)

Between March 26, 2023 and June 28, 2023, Hinton says his daily mileage surged to 72.35, which he found odd, especially because his car was being repaired by Tesla for several days in that time period. 

Hinton’s basic warranty expired much quicker than anticipated, reaching 50,000 miles around July 7, 2023. 

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In January 2024, Hinton took his vehicle in for a sixth service visit to address ongoing suspension issues that had previously been covered under warranty. Hinton claims the Tesla repair center refused to do the work under warranty because the vehicle was no longer covered. 

How do Tesla’s odometers work? 

What they're saying:

"Rather than relying on mechanical or electronic systems to measure distance … Tesla Inc. employs an odometer system that utilizes predictive algorithms, energy consumption metrics, and driver behavior multipliers that manipulate and misrepresent the actual mileage travelled by Tesla Vehicles," the lawsuit states. "In so doing, Defendants can, and do, accelerate the rate of depreciation of the value of Tesla Vehicles and also the expiration of Tesla Vehicle warranties to reduce or avoid responsibility for contractually required repairs as well as increase the purchase of its extended warranty policy."

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"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 other side:

Tesla has not responded to LiveNow from FOX’s request for comment, but the EV maker denied all allegations in court filings.  

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What's next:

Hinton is asking for punitive and compensative damages from Tesla. Tesla got the lawsuit moved from state court in Los Angeles to federal court.