Class Action Targets Tesla for Alleged Deceptive EV Range Advertising

Three Tesla owners from California have jointly filed a proposed class action lawsuit against the electric vehicle manufacturer, alleging false advertising of driving ranges for its EVs. 

The legal action, lodged in the US District Court for the Northern District of California, refers to a recent Reuters article disclosing Tesla’s establishment of a “Diversion Team” in Nevada aimed at canceling appointments related to range complaints. This follows claims that Tesla had developed algorithms around a decade ago to display optimistic projections on in-dash range meters, supposedly at the behest of CEO Elon Musk.

The lawsuit contends that Tesla’s conduct breaches vehicle warranties and constitutes fraud and unfair competition. The plaintiffs, represented by Milberg Coleman Bryson Phillips Grossman, assert that Tesla failed to deliver products that matched their advertised performance. Their allegations highlight instances where the plaintiffs’ Teslas fell far short of the advertised ranges, despite having raised concerns with the company to no avail.

One plaintiff, James Porter, stated that during a trip, his Model Y experienced a loss of approximately 182 miles of range after driving just 92 miles. The lawsuit argues that truthful range advertisement would have influenced consumers’ purchasing decisions, potentially dissuading them from buying Tesla vehicles or resulting in lower price points.

The suit seeks class-action status, aspiring to represent all individuals in California who purchased certain Tesla models. The exact damages being pursued remain unspecified. This lawsuit adds to Tesla’s existing legal challenges, including lawsuits and regulatory investigations concerning its Autopilot and “Full Self-Driving” technology, as well as claims related to system safety.

Information for this story was found via Reuters, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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