Tesla Odometer Lawsuit: Are They Racking Up Fake Miles?

Case Overview: A class action lawsuit claims Tesla's odometer system inflates mileage, causing premature warranty expiration and costly repairs for owners.

Consumers Affected: California residents who purchased a new or used Tesla vehicle for personal, family, or household purposes.

Court: Superior Court for the State of California County of Los Angeles

Tesla intentionally inflates mileage readings on its vehicles to hasten warranty expirations, drive up repair revenue, and pressure customers into buying extended warranty plans, a new lawsuit alleges. 

The complaint, filed in California, alleges that Tesla’s odometer system doesn't simply measure distance traveled like a traditional car—but instead uses predictive algorithms, energy consumption data, and driver behavior to artificially boost the mileage.

By tying vehicle warranties and lease mileage caps to these readings, Tesla allegedly accelerates warranty expiration timelines and overstates wear-and-tear, undermining the resale value of its vehicles and costing consumers thousands in out-of-pocket repairs.

Tesla Odometer System Under Fire for Alleged Inaccuracy

Nyree Hinton, a Los Angeles-based financial professional with a background in data analytics, accuses the company of allowing his Tesla to rack up phantom miles—even while it sat in the shop. 

Hinton says his used 2020 Model Y quickly racked up mileage at a suspiciously fast rate after buying the car in late 2022, when he noticed an average daily mileage of 55.5 miles—even though his daily driving, mostly a short commute and local errands, should have added up to just 20 miles per day.

Between March and June 2023, while the car was repeatedly in Tesla repair shops for suspension issues, the odometer reading surged to more than 72 miles a day. By July, his basic warranty—originally expected to last through September 2024 or 50,000 miles—had already expired.

Once the warranty lapsed, Tesla refused to perform further repairs without payment. A January 2024 repair was denied under warranty, only for Hinton to later learn it may have qualified under Tesla’s own one-year repair guarantee. By fall, the car became undrivable, and a repair estimate reached nearly $10,000.

Lawsuit Claims Tesla Profits from Phantom Mileage

The lawsuit alleges Tesla uses an algorithm-based odometer system that’s not designed for precision, despite having GPS capabilities that could measure mileage accurately, essentially knowing the odometers are wrong and doing nothing.

According to the complaint and a cited Tesla patent, the system estimates mileage using energy use and behavior-based multipliers—such as penalizing "aggressive" driving—and doesn’t inform owners that these variables affect their mileage count.

The lawsuit says the result is mileage readings as much as 117% higher than those on comparable vehicles under similar conditions, according to Hinton. Online forums, including Reddit, echo similar complaints from other Tesla drivers. 

Hinton says this “phantom mileage” scheme lets Tesla dodge warranty obligations and profit from repairs, all while leaving drivers stuck with the bill.

Tesla Faces Other Legal Battles

Tesla is no stranger to the courtroom. Last year, a U.S. judge declined to dismiss a lawsuit accusing Tesla of falsely advertising its self-driving capabilities since 2016—another proposed class action claiming the company misled buyers into paying a premium for technology that remains undeveloped.

In his lawsuit against Tesla, Hinton wants to represent anyone in California who purchased a new or used Tesla Vehicle for personal, family, or household purposes. 

Case Details

• Lawsuit: Hinton v. Tesla, Inc., et al.
• Court: Superior Court for the State of California County of Los Angeles 

Plaintiffs' Attorneys

• Christopher R. Rodriguez (Singleton Schreiber, LLP)

Do you own a Tesla? Have you noticed any discrepancies with your odometer readings? Share your experience below.