Tesla (TSLA, Financial) is facing a lawsuit amid ongoing stock volatility, as a California-based financial analyst, Nyree Hinton, accuses the company of deliberately altering odometer readings. Hinton claims this manipulation causes vehicles to exceed their warranty limits faster, forcing owners to pay for repairs out of pocket.
Hinton, who owns a used 2020 Tesla Model Y, discovered that the vehicle's mileage exceeded the actual distance traveled, voiding his warranty. He purchased the car in December 2022 with less than 37,000 miles, but within six months, it surpassed 50,000 miles, breaching the warranty limit.
Hinton noted that his previous cars averaged 6,086 miles over six months, while the Model Y recorded 13,228 miles, a 117% increase. Despite Tesla issuing a recall for suspension issues in July 2023, Hinton was told in January 2024 that he must pay for repairs as the warranty had expired.
The lawsuit alleges Tesla's odometer readings are based on "energy consumption, driver behavior, and predictive algorithms," not actual mileage. Hinton seeks to elevate his lawsuit to a class action, allowing other Tesla owners to join. Tesla denies all major allegations in the lawsuit.
