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Tesla Accused of Odometer Fraud to Avoid Repair Payouts Under Warranty

ByHilary Ong

Apr 22, 2025

Tesla Accused of Odometer Fraud to Avoid Repair Payouts Under Warranty

Tesla is defending itself against a different California class-action lawsuit right now. The charges allege that the corporation has been systematically rolling back odometers to steer clear of paying costly fix claims beneath its warranties. Plaintiff Nyree Hinton brought the suit, arguing that this practice artificially inflates the number of miles driven. This new implementation has sparked serious alarm among Tesla drivers and consumers across the board.

Details of the Odometer Discrepancy

Tesla only offers a basic warranty that covers the vehicle for four years or 50,000 miles. Following this initial period, drivers have a number of extended warranty options available to them. In December 2022, Hinton purchased a cash-for-clunkers eligible, used 2020 Tesla Model Y. Since then, she’s been tracking a shocking increase in her vehicle’s odometer reading. Her log reads like a daily double for the odometer from a mere 36,772 miles up to 50,000 in only half a year. That’s a jaw-dropping 13,228 mile increase.

Hinton’s experience is not isolated. It’s an issue that other Tesla drivers have experienced as well, leading to threads about it on Reddit and Tesla forums. One address user could only get a 70-mile trip estimated from Google Maps. The Tesla odometer only logged that as 90 miles, a whopping 22% discrepancy in distance traveled.

Environmental and Regulatory Concerns

After 2024, Tesla retroactively lowered its range figures after the Environmental Protection Agency (EPA) changed how it calculates range estimates. This reimbursement change fueled new skepticism about Tesla’s mileage reporting accuracy. Hinton’s lawsuit contends that the company has “devised a scheme to increase profits and retain the revenue from the purchase,” using “predictive algorithms, energy consumption metrics, and driver behavior multipliers that manipulate and misrepresent the actual miles traveled.”

The lawsuit highlights a troubling pattern. The rate of increase in odometer readings appeared to slow significantly after warranties expired. Relative to traditional vehicles, such as a Chevy and a Mercedes, Teslas odometer readings jumped an impressive 117%. This difference indicates a systematic problem that potentially affects millions of consumers who depend on this trustworthy mileage information.

Despite these alarming allegations and the recent class-action lawsuit filing, Tesla has not publicly responded to the allegations or the lawsuit. As consumers await further developments, the implications of this case may affect Tesla’s reputation and its warranty practices moving forward.

Author’s Opinion

Tesla’s failure to address the growing concerns about its odometer readings reflects deeper issues regarding transparency and trust. Manipulating mileage to avoid warranty claims not only jeopardizes the integrity of the company but also risks tarnishing its reputation among consumers who expect reliability and fairness in their purchases. This lawsuit could be a pivotal moment for Tesla, as the outcome may redefine how the company handles consumer trust and legal accountability in the future.


Featured image credit: georgemoga via Flickr

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Hilary Ong

Hello, from one tech geek to another. Not your beloved TechCrunch writer, but a writer with an avid interest in the fast-paced tech scenes and all the latest tech mojo. I bring with me a unique take towards tech with a honed applied psychology perspective to make tech news digestible. In other words, I deliver tech news that is easy to read.

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