— A Tesla repair class action lawsuit which was dismissed in November 2023 has new life after the judge allowed the plaintiffs to alter and refile their lawsuit.
According to the lawsuit, Tesla owners are forced to use Tesla repair facilities and parts, blocking customers from using independent repair shops or parts from non-Tesla companies.
Because all EVs are designed differently, the plaintiffs allege Tesla electric vehicles can only be maintained and repaired by a service provider, “who specializes in the maintenance and repair of Tesla EVs.”
The Tesla repair lawsuit includes:
“All persons or entities in the United States who paid for Tesla Repair Services or Tesla-Compatible Parts from March 2019 to the present.”
The Tesla repair and parts class action was consolidated from five related class action lawsuits, with the current version filed by nine Tesla customers.
On March 14, 2023, Plaintiff Virginia Lambrix filed a class action against Tesla which was quickly followed by these Tesla repair class action lawsuits:
- Orendain v. Tesla (filed Mar. 15, 2023)
- Bose v. Tesla (filed Mar. 29, 2023)
- Doyle v. Tesla (filed Mar. 31, 2023)
- Nana-Anyangwe v. Tesla (filed Apr. 26, 2023)
On November 17, 2023, the judge granted Tesla's motion to dismiss, but with leave to amend based on finding the plaintiffs had not “established that Tesla Repair Services and Tesla-Compatible Parts are relevant single-brand aftermarkets, which caused all their federal and state claims to fall short.”
The repair lawsuit alleges Tesla sends owners to service centers and collision centers owned by Tesla. In addition, there are collision centers approved by Tesla which are independent but allegedly "forced to rely on Tesla itself to source Tesla-Compatible Parts and pricing.”
According to the class action, vague provisions in Tesla’s warranties say warranties will be void or coverage may be excluded based on “improper maintenance, service or repairs.” This allegedly prevents owners from repairing their own vehicles or using independent service providers.
Except for certain “basic maintenance services (e.g., tire rotation)," the lawsuit alleges virtually all Tesla repair services are performed by the Tesla-owned centers.
Plaintiffs further contend Tesla owners are “locked in” to using car parts that were specifically designed to be compatible with Tesla vehicles.
"[M]any parts that can be purchased from Tesla cannot be properly installed without assistance from Tesla. And many repairs require that the cars be put in 'diagnostic' or 'service' mode, and Plaintiffs allege that Tesla 'geo-fenced . . . their EVs so they would only enter diagnostic or service mode when located in a Tesla Service Center or Tesla-Approved Collision Center.'” — Tesla repair lawsuit
The class action also argues Tesla owners must pay too much for repairs and parts, and customers must also allegedly wait extended periods to have their vehicles repaired.
In allowing the Tesla repair and parts lawsuit to move forward, Judge Trina Thompson said the plaintiffs presented enough evidence to allege all their claims, except one.
Importantly:
"The Court finds that Plaintiffs have plausibly alleged a cause of action for monopolization and unlawful tying under the Sherman act and causes of action under the Cartwright and California UCL [Unfair Competition Law]." — Judge Thompson
The Tesla repair lawsuit was filed in the U.S. District Court for the Northern District of California: Virginia M. Lambrix, et al., v. Tesla Inc.
