Tesla Faces Class Action Lawsuit Over Odometer Discrepancies
In a recent story published by Business Insider, five Tesla drivers have come forward to voice a concerning issue regarding their vehicles' odometer readings. These drivers have reported a significant discrepancy between the miles they believe they have driven and what their odometers reflect. This situation has raised alarm bells, particularly as a class action lawsuit has been filed against Tesla, alleging intentional manipulation of odometer readings to expedite the nullification of warranties.
One notable account comes from Sjoerd van der Wal via Getty Images, featuring the experience of Astonia Diaz, a Tesla owner based in Las Vegas. Diaz purchased a new Model Y for $60,000 in 2021, and about five months after her purchase, she noticed an alarming reading of 7,000 miles on the odometer. As a remote worker who primarily uses her vehicle for short trips, such as grocery shopping and occasional visits to the mall, she felt this reading was not consistent with her actual driving habits.
To get 7,000 miles in five months, Id have to be driving about 1,400 miles each month. I may have driven half of that, or even less, Diaz expressed in her interview with Business Insider. Her experience was not an isolated incident. Other Tesla drivers echoed similar sentiments, suggesting that this might be a broader issue impacting numerous Tesla owners.
The crux of the class action lawsuit, filed by Nyree Hinton in Californias Central District Court on April 2, 2023, accuses Tesla of employing algorithms and energy consumption metrics that purportedly manipulate the actual mileage recorded by their electric vehicles. Hinton, who purchased a used 2020 Model Y with an odometer reading of 36,772 miles in December 2022, experienced significant suspension issues shortly after his purchase. He noticed discrepancies in his odometer readings compared to his actual driving distances.
According to the complaint, Hintons vehicle exhibited mileage accumulations that were 15% to 117% higher than his other vehicles. This discrepancy raised concerns about the validity of warranties and lease agreements, as inflated mileage could lead to voided warranties and added costs for consumers. Hinton's warranty, which was valid until September 2024 or 50,000 miles, was voided a year sooner than expected, just as he claims the mileage inconsistencies ceased.
In a similar situation, Olivia, a Model 3 driver from Minneapolis, began to track the odometer readings against her phone's GPS after noticing excessive miles being logged on her vehicle. Despite her consistent daily commute of 13.4 miles, Olivia found her Tesla's odometer consistently added between two to eight extra miles per trip. When she returned the leased vehicle, she was surprised to find a bill for overage fees exceeding $5,000, as her odometer read 50,000 miles while her own records indicated she should owe significantly less.
Another driver, who chose to remain anonymous, claimed that her odometer readings appeared between 20% and 80% higher than expected based on her routine driving patterns. Some drivers reported that a software update temporarily resolved the issue, while others, including Diaz and Hinton, found no improvement in their odometer readings.
Diaz documented her mileage using an app called MileIQ and found that she averaged only 452 miles per month. Despite her records indicating she would accumulate 25,488 miles in three years, her Teslas odometer reached 48,728 miles by April 2024, nearing the 50,000-mile warranty limit.
As of now, representatives from Tesla have not publicly commented on the allegations presented in the lawsuit or the experiences shared by the drivers. Tesla's warranty terms state that their vehicles are covered for up to four years or 50,000 miles, whichever comes first, but concerns over inflated mileage could undermine these warranties, leading to significant financial implications for consumers.
The class action lawsuit against Tesla comes during a tumultuous time for the automaker. In 2025, Teslas stock has plummeted by over 33%, while the company is also navigating multiple lawsuits and investigations, including a federal probe regarding exaggerated claims about the capabilities of its self-driving technology. Furthermore, Tesla recently faced criticism and backlash against CEO Elon Musk's political activities and decisions involving layoffs at various government agencies.
This ongoing odometer issue is just one of several challenges Tesla is grappling with as it continues to grow in the electric vehicle market. As the lawsuit unfolds, many current Tesla owners are left wondering whether their vehicles are accurately reflecting their true mileage or if they might be impacted by similar discrepancies.