A Tesla Cybertruck is parked outside the 44 Club during the Formula 1 Lenovo United States Grand Prix at Circuit of Americas on Sunday Oct. 22, 2023.
Los Angeles, California – Tesla is facing a proposed class action lawsuit that accuses the electric carmaker of deliberately accelerating odometer readings in its vehicles to cause warranties to expire sooner, saving the company millions in potential repair costs.
The lawsuit, filed by Los Angeles resident Nyree Hinton, claims Tesla’s odometers do not reflect actual miles driven, but instead rely on predictive algorithms based on energy consumption and driver behavior. Hinton alleges this manipulation results in inflated mileage readings that prematurely void warranty coverage.
According to the complaint, Hinton purchased a used 2020 Tesla Model Y in December 2022 with 36,772 miles on it. He claims the odometer began logging mileage up to 15% faster than his other vehicles and daily driving habits would suggest. At one point, it reportedly logged 72 miles of daily travel, even though Hinton said he never exceeded 20.
This alleged inflation caused his 50,000-mile basic warranty to expire far earlier than expected, leaving him on the hook for a $10,000 suspension repair bill that he believed Tesla should have covered.
“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 lawsuit states.
Hinton is seeking both compensatory and punitive damages on behalf of California Tesla owners, with the potential class size encompassing over one million vehicles. The case was recently moved from state court to the U.S. District Court for the Central District of California.
Tesla, which has not yet responded publicly to the allegations, has denied all material claims in court filings. The company, based in Austin, Texas, does not maintain a media relations department and did not immediately respond to inquiries on Thursday.
This is not the first time Tesla has faced legal scrutiny over its vehicle metrics. In a separate lawsuit over alleged exaggeration of driving ranges, a federal judge ruled in March 2024 that affected drivers must pursue claims through individual arbitration rather than class action.
The current case, Hinton v. Tesla Inc et al, docket number 25-02877, adds to the growing legal pressure on the automaker as it continues to face consumer complaints about transparency and reliability.
