Tesla allegedly speeds up odometers to limit warranty repairs
- Nyree Hinton claims that his Tesla Model Y's odometer readings are inaccurate and inflated.
- His warranty expired prematurely due to these discrepancies, resulting in significant repair costs.
- Hinton has filed a class action lawsuit against Tesla, representing potentially over 1 million affected drivers.
In December 2022, Nyree Hinton, a Los Angeles resident, purchased a 2020 Tesla Model Y. Shortly after, he discovered that the vehicle's odometer readings appeared to operate inaccurately, allegedly running at least 15% fast. Hinton based this claim on his experience with other vehicles and his driving history, asserting that the software used by Tesla affected the odometer by monitoring energy consumption and driver behavior rather than reflecting actual mileage. He indicated that for a period, the odometer inaccurately reported he was driving 72 miles a day, significantly more than his typical daily driving of 20 miles. As a result of these odometer discrepancies, Hinton's 50,000-mile basic warranty expired ahead of schedule, leaving him with a substantial $10,000 repair bill for suspension issues he assumed Tesla should cover. Based on his experiences and the issues faced, Hinton filed a proposed class action lawsuit against Tesla, which he alleges is a systematic practice that aims to reduce the financial burden of warranty repairs by causing customers to exceed mileage limits outlined in their warranties. Hinton argues that the practice of tying warranty limits and lease mileage caps to inflated odometer readings not only improves Tesla's repair revenue but also reduces its warranty obligations. His complaint seeks compensatory and punitive damages on behalf of all Tesla drivers in California, which could extend to over 1 million vehicles. The case, titled Hinton v. Tesla Inc., was moved from a state court to U.S. District Court in Los Angeles as of April 2025. Meanwhile, Tesla responded by denying all material allegations presented in the lawsuit, and the company’s media relations office has not made comments on the ongoing litigation. This lawsuit is not the only legal issue Tesla faces regarding fuel efficiency claims; the company has previously been accused of inflating vehicle driving ranges in another federal case. In March 2024, a federal judge ruled that claims from that case needed to be resolved through individual arbitrations rather than as a class action. This comprehensive legal background against Tesla hints at broader systemic issues and disputes regarding its vehicle performance claims, transparency with consumers, and how potential resolutions may impact both the company and its customer base in the future.