Overview

• A February 2025 lawsuit alleges Tesla manipulated odometer readings to prematurely end vehicle warranties, forcing customers to pay for repairs.
• The plaintiff, Nyree Hinton, claims his Tesla Model Y displayed inflated mileage, causing his warranty to expire prematurely, and later reverted to normal readings.
• The lawsuit accuses Tesla of breach of contract, negligent misrepresentation, and unjust enrichment, with class-action status being sought.
• Tesla sales have declined globally, with its stock dropping over 34% year-to-date as brand perception suffers from controversies involving CEO Elon Musk.
• Used Tesla vehicles are depreciating at three times the rate of other brands, exacerbating concerns over resale value and customer trust.