Tesla odometer scandal: Owners sue Elon Musk’s company

Tesla is facing mounting legal action in the US and Australia as disgruntled owners and staff declare they’ve had enough.

Tesla is facing a proposed class-action lawsuit in California alleging the company is inflating odometer readings in its vehicles to void warranties and covering repairs.

The latest class action filed by Tesla owner Nyree Hinton claims the vehicle manufacturer uses predictive algorithms to artificially increase mileage displayed on the odometer, rather than tracking the actual distance driven.

Hinton alleges his 2020 Model Y showed mileage roughly 15 per cent higher than his previous vehicles, causing his 50,000 mile warranty to lapse early.

He was billed $10,000 for a repair that would have been covered under warranty.

Tesla has denied the allegations and not publicly commented.

The odometer case is now just the latest in a string of legal actions Tesla is facing across the globe.

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US Tesla owners allege their vehicles are showing incorrect mileage, causing warranties to lapse early. Picture Mark Bean.

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In 2023, Tesla was hit with a US class action over allegations that it was inflating vehicle driving range.

Tesla owners alleged that their vehicles displayed unrealistic range estimates, which would only calibrate after batteries were half depleted, leading to claims of fraud and breach of warranty.

The automaker is also being sued in the US for claims it monopolised the repair and parts market.

Tesla is also facing scrutiny over safety.

In a separate case, former Tesla engineer Cristina Balan has successfully revived a defamation lawsuit against the automaker and CEO Elon Musk.

Balan claims that Tesla retaliated against her after she raised a design flaw involving carpets potentially interfering with brake pedals.

“He is pure evil,” Balan told Times Radio.

“I started this lawsuit to prove my innocence and to prove how vindictive this monster is.”

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A former Tesla engineer claims she was defamed by Tesla and CEO Elon Musk after raising several safety claims. Picture: AFP

The former engineer, who was fired in 2014, alleges she was dismissed for flagging the safety issue and that Tesla went on to defame her.

Balan claims she emailed CEO Elon Musk directly to notify him about the serious issues, including “hundred of defects per car.”

But instead of a response, she claims she was ostracised by Tesla’s HR and legal teams.

“They forced me to resign. They told me that if I’m not resigning on the spot, they will deport my entire team, because the entire Tesla team, the entire interior team, was backing me up,” she said.

In Australia, a major class-action lawsuit filed against Tesla alleges that thousands of owners were misled about the Model 3 and Model Y vehicles.

The claim filed in the Federal Court by Bannister Law and Millner and Knight, argues Tesla over promised on features including range, charging speed, and Autopilot functionality.

Owners allege these vehicles failed to perform, with several issues including sudden power loss, battery problems and malfunctioning driver-assist systems.

Originally published as Tesla odometer scandal: Owners sue Elon Musk’s company