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As if it didn’t already have enough going on
with declining sales and concerning recalls,
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Tesla has found itself in more trouble after
the electric automaker was targeted in a new
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class action lawsuit.
According to the street,
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Tesla has been accused of deliberately fudging
the mileage on its vehicle’s odometers in an
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apparent attempt to avoid paying for repairs
that would normally be covered under warranty.
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The plaintiff in the lawsuit said he bought a
used 2020 Model Y Tesla vehicle with 36,770.
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2 miles on it, he said he started to notice
peculiar patterns in mileage while the vehicle
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was continually having problems with its
suspension.
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He claimed his daily driving habits should have
amounted to about 20 miles per day,
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but his Tesla’s odometer was registering an
average of 72 miles per day.
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As a result, he said his basic warranty expired
way ahead of schedule.
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The lawsuit claims that Tesla’s odometer system
relies on predictive algorithms,
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energy consumption metrics, and driver behavior
multiplier.
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That manipulate and misrepresent the actual
mileage traveled by Tesla vehicles.
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And by doing so, the automaker is accelerating
the rate of depreciation and the expiration of
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warranties for its vehicles.
By tying warranty limits and least mileage caps
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to inflated odometer readings, Tesla increases
repair revenue,
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reduces warranty obligations, and compels
consumers to purchase extended warranties
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prematurely, the lawsuit reads.
As the report points out,
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other owners have accused Tesla of the same
type of Mileage manipulation.
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The lawsuit is another headache for Tesla as it
deals with several other problems.
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Earlier this month, the company reported a
double digit drop in sales for the first
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quarter of 2025, which the Associated Press
attributed to an aging lineup,
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increased competition and backlash from CEO
Elon Musk’s political career.
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Tesla is also facing another high profile
recall for its high profile cyber truck this
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time because pieces of the electric truck are
flying off while driving.
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I’m Ben Munson and this is manufacturing now.