April 22, 2025 – Tesla Inc. is embroiled in a class-action lawsuit alleging that the electric vehicle manufacturer manipulated odometer readings to sidestep warranty obligations. The suit claims that Tesla intentionally accelerated odometer counts, pushing vehicles beyond warranty coverage sooner than anticipated to reduce repair costs. Tesla and its legal counsel have vehemently denied all material allegations in the complaint, with CEO Elon Musk taking to social media platform X to denounce the lawsuit as “absurd.”
The legal action, initiated by Los Angeles resident Nyree Hinton, contends that his 2020 Tesla Model Y’s odometer readings were not based on actual mileage but were influenced by energy consumption, driving habits, and “predictive algorithms.” According to Reuters, Hinton asserts that his vehicle displayed 72 miles driven daily despite his actual maximum daily mileage being 20 miles. This inflated odometer reading allegedly led to the premature expiration of his vehicle’s warranty, forcing him to pay $10,000 out-of-pocket for suspension system repairs that should have been covered under warranty. The lawsuit argues, “Tesla ties warranty limits and lease mileage caps to inflated ‘odometer’ readings, boosting repair revenue, minimizing warranty obligations, and compelling consumers to purchase extended warranties prematurely.”
In response to the lawsuit, Musk stated, “This is ridiculous.” Tesla and its legal team have categorically denied all substantive claims outlined in the complaint. Furthermore, numerous seasoned electric vehicle owners have pointed out on social media that the lawsuit’s allegations are inaccurate. They emphasize that Tesla’s odometers have never employed predictive algorithms to calculate mileage. Others have noted that repairs are not a significant profit driver for Tesla, as the company’s vehicles typically have long lifespans, requiring infrequent maintenance or part replacements.
