The Allegations Against Tesla: Inflated Mileage Claims
In recent months, Tesla has come under fire due to allegations of inflating the mileage of its vehicles by up to 117%. This claim has emerged from a class-action lawsuit filed in California, suggesting that Tesla’s mileage manipulation could lead to premature expiration of warranty periods, potentially costing customers over $100,000 in repair fees. If these allegations hold up in court, Tesla could be seen as gaining over 5 trillion won annually from this practice.
Understanding the Mileage Manipulation Controversy
The controversy began with Nairi Hinton, who purchased a 2020 Model Y and reported that the vehicle’s mileage increased by 116 kilometers despite only driving 32 kilometers in a day. Tesla’s patented system, introduced in 2023, calculates mileage based on energy consumption and driving patterns rather than physical distance. Critics argue this system is part of Tesla’s business model, allowing them to save approximately 200,000 won in warranty repair costs per 1,000 kilometers artificially added, while pushing owners to purchase extended warranties worth around 4.5 million won.
The Potential Fallout of the Class-Action Lawsuit
If the lawsuit gains traction, Tesla could face a global warranty crisis. In the first quarter of 2025, Tesla’s revenue dropped by 9% to 24 trillion won, with operating profit margins plummeting to 2.1%. Drawing parallels to Volkswagen’s emissions scandal, the financial repercussions for Tesla could be even more severe, as the allegations target the very essence of their service contracts. This could potentially invalidate approximately 1.3 million warranties in California, sparking a global class-action movement.
A Crisis of Trust: Tesla’s Response and Consumer Sentiment
Elon Musk has dismissed these claims as “ridiculous,” with Tesla’s main defense resting on the legal allowance for a ±4% error margin in mileage measurement. However, if Hinton’s claims are accurate, it would require driving at 330 km/h daily to reach such mileage figures, highlighting the absurdity of the situation. This incident raises concerns about the high ownership costs of electric vehicles and the potential for “unexpected expenses,” eroding consumer trust in the brand.
Comparing Tesla’s Predicament to Past Automotive Scandals
While Volkswagen struggled to regain its U.S. market share after the 2015 emissions scandal, Tesla’s situation could be more dire. Unlike concealing pollution, Tesla is accused of inflating mileage figures, a fundamental aspect of vehicle ownership. If a car’s odometer runs faster than the clock on a mortgage, what can consumers truly trust?
Looking Ahead: The Broader Implications for the Automotive Industry
The allegations against Tesla highlight the broader challenges faced by the automotive industry in the electric vehicle era. As technology advances, so do the complexities of maintaining transparency and trust with consumers. The outcome of this lawsuit could set a precedent for how automakers address mileage calculations and warranty policies, ultimately shaping the future of electric vehicle ownership.
In conclusion, while Tesla’s innovative approach to mileage calculation is under scrutiny, the broader implications for the industry and consumer trust cannot be ignored. As the legal proceedings unfold, the automotive world watches closely, aware that the repercussions could extend far beyond Tesla’s balance sheets.