Tesla Could Face A Lawsuit Over Repairs

Tesla's after sales model is much different than legacy automakers.

U.S. District Judge Trina Thompson ruled that owners could attempt to prove that Tesla pushed them into paying higher prices and long wait times in a reversal of the lawsuit she dismissed last year. Thompson’s new ruling means owners could pursue a class action suit accusing the automaker of a monopoly on repairs and parts, per Reuters.

Tesla is under threat of a class action lawsuit.

Evidence against Tesla’s alleged monopoly includes its refusal to open more authorized service centers and designing vehicles requiring specific diagnostic software and updates that only Tesla could provide. Tesla’s supposed monopoly could also expand to parts. It is accused of telling original equipment manufacturers (OEMs) that they cannot sell Tesla parts to anyone but the automaker.

Moreover, the judge accuses Tesla of selling parts directly to customers solely on a “limited basis.” The grounds for what could become the class action suit are rooted in Tesla’s almost entirely exclusive handling of both parts and repairs, but it remains to be seen whether the owners will get their day in court.

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Chase Bierenkoven
Chase Bierenkoven

Chase is an automotive journalist with years of experience in the industry. He writes for outlets like Edmunds and AutoGuide, among many others. When not writing, Chase is in front of the camera over at The Overrun, his YouTube channel run alongside his friend and co-host Jobe Teehan. If he's not writing reviews of the latest in cars or producing industry coverage, Chase is at home in the driver's seat of his own (usually German) sports cars.

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