Tesla Faces New Lawsuit Over Alleged Odometer Manipulation

Tesla Faces New Lawsuit Over Alleged Odometer Manipulation

Tesla, no stranger to legal battles, is facing yet another lawsuit — this time from a multi-Tesla owner in Northern California who claims the automaker is inaccurately measuring mileage using a flawed algorithm. According to the complaint, this system inflates reported miles driven by anywhere from 15% to 117%, allegedly allowing Tesla to prematurely end warranty coverage. The lawsuit is based on a patent filed by Tesla, though it’s unclear whether the technology has actually been implemented in its vehicles.

The suit was brought forward by Nyree Hinton, who, according to CarScoops, purchased a 2020 Tesla Model Y in December 2022 with 36,772 miles on the odometer. Hinton alleges that between December 14, 2022, and February 6, 2023, they drove an average of 55.54 miles per day. However, between March 26 and June 28, 2023 — as the vehicle neared the end of its warranty — the daily average inexplicably jumped to 72.53 miles. Hinton claims this increase doesn’t match their consistent daily routine and estimates actual daily mileage should have been around 20 miles less.

In total, Hinton states they physically drove 6,086 miles during the disputed period, while Tesla’s systems recorded 13,228 miles. Central to the lawsuit is a Tesla patent describing a “miles-to-electrical energy conversion factor” — a system that factors in variables such as charging patterns and road conditions to estimate mileage, rather than recording it directly through mechanical or electrical means. The complaint accuses Tesla of using this technology to inflate mileage data and, as a result, shorten the lifespan of vehicle warranties.

Although there is no confirmed evidence that this patented system is in active use, Tesla owners have long discussed mileage overestimations on online forums. If the case proceeds to trial, the discovery phase could reveal whether the technology is indeed deployed in Tesla’s vehicles. Tesla currently offers warranties ranging from 100,000 to 150,000 miles, depending on the model.

Tesla’s legal troubles are nothing new, but 2025 presents a different landscape. In 2024 alone, the company grappled with accusations ranging from pollution violations at its California plant, to a settlement with the family of an Apple engineer who died in a Model X crash, to a class-action lawsuit over misleading self-driving claims.

Still, none of these issues may have harmed Tesla’s public image as much as the actions of its own CEO. Elon Musk’s increasingly controversial political involvement has driven down Tesla’s sales both domestically and abroad. Despite declining demand and mounting challenges, Musk remains focused on securing his $56 billion compensation package — currently stalled in Delaware courts — by pushing to change the very laws blocking the payout.