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The class action lawsuit claims Tesla manipulates mileage readings on its electric vehicles to show longer distances than were actually driven, potentially reducing or avoiding costly repairs. The suit was originally filed in California in February.
The 30-page filing says the odometer system used in Teslas doesn't measure physical distance directly. Instead, the complaint claims it relies on predictive algorithms and data like energy usage and driving patterns – a method that may allow Tesla to "knowingly inflate distances traveled" or at least tolerate "substantial inaccuracies."
A Los Angeles man named Nyree Hinton bought a used 2020 Tesla Model Y with about 36,772 miles on it in December 2022. According to the suit, Hinton began servicing the car in February 2023 and noticed his mileage was increasing far more than expected, despite a routine that involved minimal daily driving.
The suit said that Tesla's system reported Hinton drove 72.35 miles per day when his daily average should have been about 20 miles "by generous estimates."
"As a result of this increased mileage accumulation, plaintiff’s basic warranty expired well ahead of schedule – when the odometer read that the vehicle had reached 50,000 miles – in or around July 7, 2023," the court filing said.
Once the odometer crossed the threshold, Hinton claimed that Tesla declined further repairs under warranty.
"Given Tesla Inc.'s refusal to honor the previous warranty, and the significant estimated cost of the repairs needed, plaintiff elected to not have Tesla, Inc. perform any further repairs to his Tesla vehicle – which is now inoperable," the suit said.
Hinton's lawyers also cited many complaints on websites like Reddit about Tesla potentially rigging odometers.
"[Tesla's] conduct results in shortened warranty periods, increased repair costs for consumers, and reduced warranty obligations and increased sales of extended warranties – all of which result in financial gain for [Tesla]," the filing said.
Tesla CEO Elon Musk bluntly denied the suit's accusations.
"This is idiotic," he said in a reply to a post on his social media platform X, formerly known as Twitter.
The class action suit is the latest trouble that Tesla is facing.
The EV company has faced intense backlash, massive protests, and acts of vandalism over Musk's political influence with President Donald Trump. The billionaire has been the de facto leader of the Department of Government Efficiency, an organization tasked with gutting federal agencies.
Tesla's stock has dropped about 41% since the start of 2025 and has plummeted even further from its all-time high in December 2024. The company's deliveries fell 13% in the first quarter compared to the same period in 2024, missing even its lowest investor forecasts.
Owners are getting rid of Teslas at record levels, with car shopping website Edmunds reporting March saw the highest-ever share of Tesla trade-ins. A Morgan Stanley investor survey found that 85% of respondents believed Musk's role in the Trump administration has hurt Tesla's business.
Tesla has also dealt with many safety issues, with the company recalling virtually all Cybertrucks in March because the exterior trim panels could fall off while driving. That followed a February recall of more than 376,000 vehicles and an ongoing investigation into Tesla's remote-driving feature, "Actually Smart Summon," which has been linked to several crashes.
According to the National Highway Traffic Safety Administration, odometer fraud is considered any alteration meant to change the displayed mileage. Digital odometers, like those used in Tesla vehicles, are harder to inspect than mechanical ones and rely heavily on internal software – making outside verification more difficult.
The NHSTA estimates more than 450,000 vehicles are sold each year with false odometer readings, costing buyers more than $1 billion annually.
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