Tesla facing Right to Repair class-action lawsuits

by | Mar 16, 2023 | 0 comments

Tesla has been hit with two class-action lawsuits by U.S. car owners claiming their service and parts policies are monopolistic, costing owners money and use of their vehicles.

The two separate lawsuits were first reported by Reuters. Both suits were filed this week in San Francisco federal court by Model S owners.

According to the legal documents, the owners are alleging that they’ve “been forced to pay supracompetitive prices and suffer exorbitant wait times to maintain and repair their Tesla vehicles.”

Legal filings claim that “As a result of this anticompetitive course of conduct, Tesla has prevented independent providers from entering the Tesla Repair Services market, prevented its OEM parts manufacturers from producing Tesla-Compatible Parts for anyone other than Tesla, and prevented market entry by non-OEM, Tesla-Compatible Parts manufacturers.

Using the ability of most car owners to obtains parts and service in the aftermarket as a staring point, filings lay out their case:

“Tesla owners, by comparison, effectively have only one option: schedule service at Tesla (or within the limited network of Tesla-approved service centers), where their Tesla will be maintained or repaired using only Tesla OEM parts.

“This is because Tesla, which has market power in the United States electric vehicle market (“EV market”), leverages that power to monopolize and restrain the markets for Tesla Repair Service and Tesla-Compatible Parts. Tesla does this by, among other things:

(a) Designing its vehicle warranties and related policies to discourage Tesla owners from obtaining parts or services anywhere other than Tesla;

(b) Designing its vehicles so that maintenance and repairs require access to diagnostic and telematic information accessible only through remote management tools exclusively accessed by Tesla; and

(c) Limiting access to its manuals, diagnostic tools, vehicle telematic data, and original equipment

“This, in turn, has caused Tesla owners to suffer lengthy delays in repairing or maintaining their EVs, only to pay supracompetitive prices for those parts and repairs once they are finally provided.”

According to media reports, both suits claim that the reason for the inordinate cost and wait times is “Tesla’s monopolization…and restraint of the markets for compatible replacement parts (“Tesla-Compatible Parts”) and maintenance and repair services (“Tesla Repair Services”) for Tesla vehicles.”

The proposed class action in both instances would be open to anyone who has paid for Tesla repairs or parts since March 2019.


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