— A Tesla repair class action lawsuit that was dismissed in November 2023 has been given new life after a judge allowed the plaintiffs to amend and refile the lawsuit.
According to the lawsuit, Tesla owners are forced to use Tesla repair facilities and parts, preventing customers from using independent repair shops or parts from non-Tesla companies.
Because all electric vehicles are designed differently, the plaintiffs claim that Tesla electric vehicles can only be maintained and repaired by service providers “specializing in the maintenance and repair of Tesla electric vehicles.”
Tesla repair lawsuits include:
“Any person or entity that has paid for Tesla repair services or Tesla-compatible parts in the United States since March 2019.”
The Tesla repair and parts class action lawsuit was consolidated from five related class actions, with the current version filed by nine Tesla customers.
On March 14, 2023, plaintiff Virginia Lambrix filed a class action lawsuit against Tesla, and the following Tesla repair class action lawsuits were filed shortly thereafter:
Orendain v. Tesla (filed March 15, 2023)
Bose v. Tesla (filed March 29, 2023)
Doyle v. Tesla (filed March 31, 2023)
Nana-Anyangwe v. Tesla (filed April 26, 2023)
On November 17, 2023, the judge granted Tesla’s motion to dismiss but allowed amendments, reasoning that the plaintiffs “failed to prove that Tesla repair services and Tesla-compatible parts are a related single-brand aftermarket, which results in all of their federal and state claims being unsatisfied.”
The repair lawsuit alleges that Tesla sends owners to Tesla-owned service centers and collision centers. In addition, Tesla approves some collision centers, which, while independent, are allegedly “forced to rely on Tesla itself for sourcing Tesla-compatible parts and pricing.”
According to the class action lawsuit, vague language in Tesla’s warranty terms states that the warranty will be void or may not be covered if it is “improperly maintained, serviced, or repaired.” This allegedly prevents owners from repairing their vehicles themselves or using independent service providers.
The lawsuit states that, with the exception of certain “basic maintenance services (such as tire rotations)”, almost all Tesla repairs are performed by Tesla-owned centers.
The plaintiffs further claim that Tesla owners are “locked in” to using auto parts that are specifically designed to be compatible with Tesla vehicles.
“Many parts purchased from Tesla cannot be properly installed without Tesla’s assistance. Many repairs require placing the vehicle in ‘diagnostic’ or ‘service’ mode, and Plaintiffs claim that Tesla ‘geo-fences their electric vehicles so that they will only enter diagnostic or service mode when in a Tesla Service Center or a Tesla-approved collision center.'” Tesla Repair Lawsuit
The class action lawsuit also claims that Tesla owners have to pay excessively high prices for repairs and parts, and that customers allegedly have to wait long periods of time for their vehicles to be fixed.
In allowing the Tesla repair and parts lawsuit to proceed, Judge Trina Thompson said the plaintiffs submitted sufficient evidence to assert all but one claim.
important:
“The Court finds that plaintiffs have ample merit to assert antitrust and illegal tying claims under the Sherman Act, as well as claims under the Cartwright Act and California’s Unfair Competition Law.” — Judge Thompson
The Tesla repair lawsuit has been filed in the U.S. District Court for the Northern District of California: Virginia M. Lambrix et al. v. Tesla Inc..
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