Tesla is facing a proposed class action lawsuit in California accusing the company of deliberately inflating odometer readings in its vehicles. The lawsuit claims Tesla manipulated vehicle mileage data to shorten warranty periods and reduce repair obligations — a move that could impact thousands of owners across the state.
According to the lawsuit, lead plaintiff Nyree Hinton purchased a used 2020 Tesla Model Y in December 2022 with an odometer reading of 36,772 miles. Shortly after, he began experiencing suspension issues and brought the car in for repairs. But while monitoring his daily mileage, Hinton noticed what he called “peculiar patterns” — abnormal spikes in mileage despite maintaining a consistent routine of short commutes.
The lawsuit, brought forward by law firm Singleton Schreiber, alleges the vehicle began logging an average of over 72 miles per day — nearly quadruple the 20 miles Hinton expected based on his driving habits. This sudden surge in mileage pushed the vehicle past the 50,000-mile limit of Tesla’s Basic Vehicle Limited Warranty, which covers repairs for four years or 50,000 miles, whichever comes first.
When Hinton returned to Tesla for continued service, the automaker informed him the warranty had expired and refused to cover further repairs.
Then, Hinton alleges the mileage readings returned to expected levels after the warranty lapsed.
According to the claims in the lawsuit, Tesla’s odometer system estimates mileage using predictive algorithms that factor in energy consumption and driver behavior, unlike traditional odometers that rely on physical distance measurement. The lawsuit argues that Tesla assigns lower efficiency values to aggressive driving — such as rapid acceleration — causing the system to report inflated distances.
These discrepancies, the complaint alleges, can artificially accelerate depreciation, force early warranty expiration, and pressure owners into purchasing extended warranties.
The lawsuit claims that Tesla’s algorithmic approach can inflate mileage readings, and that “Tesla knowingly overstates the distances traveled in Tesla vehicles,” calling the practice a calculated effort to reduce warranty-related costs and increase profit margins.
Tesla has not publicly commented on the lawsuit, and none of the claims have been verified in court.
The class action seeks damages for all California residents who purchased or leased a Tesla vehicle for personal use, arguing that these systemic inaccuracies violate consumer protection laws and undermine trust in the brand.
Have you noticed strange odometer readings in your Tesla? Let us know in the comments below.
Here is full lawsuit. (via ClassAction.org)
