Home » News » Tesla and Elon Musk face potential costs of hundreds of millions of dollars from two US class action lawsuits related to right-to-repair.

Tesla and Elon Musk face potential costs of hundreds of millions of dollars from two US class action lawsuits related to right-to-repair.

Tesla has been sued in two class-action lawsuits in the United States alleging that Elon Musk and his electric car company unlawfully restrict competition for service, maintenance, and parts for its Model S, Model 3, Model X, and Model Y electric cars. The class action lawsuits allege that Tesla owners would be forced by the electric car manufacturer to pay higher prices and wait longer for repairs.

Tesla und Right to Repair

In the two lawsuits filed Tuesday and Wednesday, Case Nos. Virginia Lambrix vs. Tesla, U.S. District Court, Northern District of California, No. 3:23-cv-01145 and Robert Orendian vs Tesla, no. 3:23-cv-01157 alleges that Tesla is framing warranties and repair policies for its electric vehicles in a way that discourages Tesla owners and lessees from using independent repair shops that are not under Tesla’s control.

Tesla and Elon Musk need to open up the EV ecosystem and allow competition in servicing Tesla cars and selling EV spare parts, argues plaintiffs’ attorney Matthew Ruan of Freed Kanner London & Millen, one of the proposed class action lawsuits in court. Neither Tesla itself nor Tesla’s defense attorneys have commented on the cases.

The class action lawsuits could cost Tesla hundreds of millions of dollars

According to US reports, the class in both cases includes everyone who has paid Tesla for repairs or parts since March 2019. Each lawsuit was filed on behalf of a California resident, and neither lawsuit identified an amount of damages. Ruan told US media that the potential class includes hundreds of thousands of Tesla owners and lessees, so damages could total hundreds of millions of dollars.

Tesla is currently considered the most valuable automaker in the world, posting sales of $24.32 billion in the fourth quarter of 2022 alone. With the class action lawsuits, Tesla joins other major auto and vehicle manufacturers that are pursuing antitrust lawsuits in the United States alleging obstruction Right-to-Repair to deal with demands.

The general tenor of the lawsuits accuses Elon Musk’s e-car manufacturer Tesla that the alleged consumer restrictions on the service and repair of Tesla cars would mean that Tesla owners, who would otherwise visit an independent workshop, sometimes communicated with each other have to deal with extremely long waiting times. The lawsuits demand that Tesla “dismantle” its monopoly on repair services and parts and order Tesla to “make its repair manuals and diagnostic tools available to individuals and independent repairers at a reasonable price.”

A number of right-to-repair cases have already been filed in the US courts, including those against Harley-Davidson in Wisconsin and against the world’s largest manufacturer of farm machinery, Deere & Co.

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