Tesla 'Predictive Algorithm' Speeds Odometer To Avoid Warranties: Lawsuit

Because of Tesla's financial difficulties, the motivation and technological capability to pull this off probably exist and will likely not be dismissed by the courts. 

And that's without considering the previously sketchy behavior for which it has been legally challenged. JL

Jonathan Gitlin reports in ars technica:

A lawsuit alleges that Tesla cars are falsely exaggerating odometer readings to make warranties expire prematurely. The lawsuit alleges Tesla "employs an odometer system that utilizes predictive algorithms, energy consumption metrics, and driver behavior multipliers that manipulate and misrepresent the actual mileage traveled by Tesla Vehicles" and that "consistently exhibited accelerated mileage accumulations of varying percentages ranging from 15% to 117% higher. There are claims of similar experiences by other Tesla owners on Reddit.

Tesla is facing a new scandal that once again sees the electric automaker accused of misleading customers. In the past, it has been caught making "misleading statements" about the safety of its electric vehicles, and more recently, an investigation by Reuters found Tesla EVs exaggerated their efficiency. Now, a lawsuit filed in California alleges that the cars are also falsely exaggerating odometer readings to make warranties expire prematurely.

The lead plaintiff in the case, Nyree Hinton, bought a used Model Y with less than 37,000 miles (59,546 km) on the odometer. Within six months, it had pushed past the 50,000-mile (80,467 km) mark, at which point the car's bumper-to-bumper warranty expired. (Like virtually all EVs, Tesla powertrains have a separate warranty that lasts much longer.)

For this six-month period, Hinton says his Model Y odometer gained 13,228 miles (21,288 km). By comparison, averages of his three previous vehicles showed that with the same commute, he was only driving 6,086 miles (9,794 km) per 6 months.

 

The following year, Hinton's commute got longer, but he claims his car actually recorded 800 fewer miles per month once it was no longer under warranty. During the first six months of ownership, Hinton says the car displayed an average of 2,217 miles (3,568 km) a month; for the 12 months following the expiration of the warranty (and with a longer commute), the Model Y displayed an average of just 1,415 miles (2,277 km) a month.

Hinton's lawsuit alleges that Tesla "employs an odometer system that utilizes predictive algorithms, energy consumption metrics, and driver behavior multipliers that manipulate and misrepresent the actual mileage traveled by Tesla Vehicles" and that his car "consistently exhibited accelerated mileage accumulations of varying percentages ranging from 15 percent to 117 percent higher than plaintiff's other vehicles and his driving history."

There are claims of similar experiences by Tesla owners on Reddit, and Hinton is bringing the lawsuit on behalf of all Californian Tesla customers. That may well be unsuccessful, though. In the exaggerated range case a US district judge found that individual owners had to engage in arbitration with Tesla and could not form a class.