Tesla faces lawsuit over alleged odometer inflation tactics
The owner of a Tesla Model Y has filed a lawsuit against the manufacturer, accusing them of inflating odometer readings by up to 117 per cent. According to the suit, this practice is intended to avoid warranty repairs and accelerate vehicle depreciation.
The author of the lawsuit, filed in California, is Nyree Hinton. She accuses Tesla of not using mechanical or electronic systems for accurate distance measurement. Instead, the manufacturer is said to rely on "predictive algorithms, energy consumption metrics, and driver behaviour multipliers that manipulate and misrepresent the actual mileage travelled by Tesla vehicles."
Hinton purchased a 2020 Tesla Model Y in December 2022, with approximately 59,160 kilometres on it. She claims that from December 14, 2022, to February 6, 2023, she averaged about 89 kilometres per day. However, between March 26 and June 28, 2023, the average daily mileage increased to about 117 kilometres, despite an unchanged routine. In her opinion, the actual mileage should be about 32 kilometres per day lower.
Additionally, Hinton notes that her previous vehicles averaged around 9,795 kilometres over six months, while the Model Y registered as much as 21,287 kilometres in the same period. According to the lawsuit, Tesla's mileage readings can be inflated by 15 per cent to as much as 117 per cent.
The owner emphasizes that Tesla can precisely measure mileage using GPS. However, according to the manufacturer's patent, odometer readings are not direct measurements of distance travelled, but are based on a "miles-to-electrical energy conversion factor," which dynamically changes depending on road conditions and traffic.
The lawsuit argues that by "tying warranty limits and lease mileage caps to inflated odometer readings," Tesla could reduce its warranty obligations, increase repair revenues, and encourage customers to purchase extended warranties earlier.
This is not the first time Tesla owners have questioned the accuracy of mileage readings. For years, complaints of inflated values have appeared on forums such as Reddit and Tesla. Users claim that this issue has persisted for over two years, supporting the allegations in Hinton's lawsuit.