Tesla Faces Lawsuit over Alleged Odometer Manipulation
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Tesla Faces Lawsuit over Alleged Odometer Manipulation

Publish Date: Apr 21
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Tesla is facing legal trouble once again, this time over allegations of inflating odometer readings in its vehicles. A class-action lawsuit filed in California claims that Tesla knowingly manipulated the odometer data, causing vehicles to register higher mileage than actually driven. The lawsuit, filed by Nyree Hinton, alleges that this manipulation was done to invalidate warranty coverage prematurely, forcing customers to purchase extended warranties and pushing them to pay for repairs that would otherwise be covered under the basic warranty.

The crux of the issue lies in Tesla's odometer system, which does not measure physical distance but estimates it based on energy consumption and driving behavior. The lawsuit suggests that these estimates are intentionally skewed, allowing Tesla to reduce its liability for warranty repairs and boost revenue from repair services once warranties expire.

The case highlights the significant financial impact on Tesla owners, particularly those who have warranties or leasing agreements that depend on accurate mileage readings. If proven true, these practices could affect thousands of Tesla customers, leading to inflated repair costs and forcing them to buy extended warranties earlier than necessary.

This lawsuit adds to Tesla's growing list of legal troubles, which already includes federal investigations into autopilot accidents and shareholder complaints. If the allegations are true, it could tarnish Tesla's reputation for innovation and transparency, undermining consumer trust in a time when warranty reliability is already a major concern for buyers.

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