Activist Nyree Hinton has filed a federal lawsuit against Tesla Inc. She alleges the electric vehicle manufacturer changes odometer rolls on its vehicles to avoid costly warranty repairs. The lawsuit Hinton v. Tesla Inc et al is currently pending in the U.S. District Court for the Central District of California. It is available on PACER, or under case number 25-02877. Hinton is adamant that Tesla’s odometer readings should reflect energy consumption and driver behavior. He contends that these causes skew the reported distance driven.
Hinton bought his used 2020 Model Y in December 2022, and it had already logged 36,772 miles on the odometer when he bought it. He says he drives his car’s odometer at least 15% faster than the truth. He was able to justify this based on comparisons with other vehicles he’s owned and his own driving history. Hinton claims he never used to drive beyond 20 miles per day but the odometer information indicated otherwise. He says his basic warranty ran out too soon, even though it was in effect through 50,000 miles. This untimely NTE expiration has led to a $10,000 repair bill for suspension issues.
The lawsuit alleges that Tesla engages in fraudulent practice by artificially rolling back odometer readings. This practice increases their repair revenue, reduces their warranty liabilities, and forces consumers to purchase extended warranties earlier than they should have to. Hinton’s vigorously seeking both compensatory and punitive damages on behalf of drivers of Teslas in California. If successful, this case would continue to roll back safety requirements on more than 1 million vehicles.
In March 2024, a federal judge in Oakland just issued this landmark ruling. So he ruled that drivers in the same situation needed to follow their claims separately, in arbitration rather than as a class action. This ruling could shape the course of the rest of Hinton’s lawsuit going forward.
Tesla has denied all material allegations in the original lawsuit. On Thursday, Tesla did not respond to emails seeking comment on that or related lawsuit. The firm is headquartered in Austin, Texas. It does not have a media relations office, which further limits its ability to communicate to the public on complex legal matters.
“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,” – Nyree Hinton
Earlier this month, Hinton’s lawsuit was removed from a Los Angeles state court to federal court. This transfer further underscores the ongoing legal troubles the company now faces for its deceptive advertising of vehicle performance metrics and warranty policy.
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