Tesla is facing a class action lawsuit claiming that the company has been artificially inflating odometer readings on its electric vehicles. The plaintiff, Nyree Hinton, asserts that this inflation results from predictive algorithms instead of actual mileage, thus shortening warranty periods unfairly and generating additional repair costs for owners. Hinton alleges his warranty expired prematurely, leading to a costly suspension repair bill. He seeks compensatory and punitive damages for potentially over one million affected Tesla drivers in California. Tesla has denied any wrongdoing and moved the case to federal court.
By tying warranty limits and lease mileage caps to inflated 'odometer' readings, Tesla increases repair revenue, reduces warranty obligations, and compels consumers to purchase extended warranties prematurely.
Hinton, a Los Angeles resident, said this caused his 50,000-mile basic warranty to expire well ahead of schedule, leaving him with a $10,000 suspension repair bill.
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