Tesla is facing a class action lawsuit in California, with owners alleging that the company’s anticompetitive practices are leading to lengthy waiting times and overcharging for repairs.
The lawsuit claims that Tesla’s conduct has prevented owners from going to independent repair shops or using third-party parts, leaving them with no option but to use the company or approved service centres.
Virginia Lambrix, a Tesla Model S owner who filed the lawsuit, stated that Tesla drivers have worse repair options than those who have petrol and diesel cars, and that the company’s conduct had been copied by other electric vehicle companies.
According to the lawsuit, the lack of competition in the Tesla repair services and Tesla-compatible parts markets caused by Tesla’s misconduct has resulted in artificially inflated prices, insufficient supply, and excessive wait times for Tesla owners looking to maintain or repair their EVs.
It also claims that Tesla’s conduct is a breach of US anti-monopoly laws, as Tesla owners only have the option of using the company or approved service centres. The lawsuit alleges that if Tesla’s conduct had not been anticompetitive and monopolistic, Tesla owners would have similar maintenance and repair options as purchasers of internal combustion engine vehicles.
The lawsuit also states that Tesla closely controls access to its diagnostic tools, which are required to make repairs, charging $3,000 a year to repair shops.
The lawsuit seeks to force Tesla to make manuals and diagnostic tools available to individuals and independent garages, and to repay customers for the amount they have allegedly been overcharged for repair services. The company accounted for the majority of electric car sales in the first eight months of last year, putting it in a dominant market position according to the lawsuit.
Tesla has said that electric vehicles require less maintenance and fewer repairs than petrol-powered cars, but independent reviewers have questioned its claims.
However, many Tesla owners have complained of frustrating waits for replacement parts or service appointments as the carmaker has grown. Tesla sales have grown more than threefold since 2018, but the number of stores and service stations has failed to keep pace, the lawsuit said.
The lawsuit alleges that Tesla’s anticompetitive practices leave car owners at risk of exploitation. Lambrix, the Tesla Model S owner who filed the lawsuit, stated that the lack of competition in the Tesla repair services and Tesla-compatible parts markets caused by Tesla’s misconduct has resulted in artificially inflated prices, insufficient supply, and excessive wait times for Tesla owners looking to maintain or repair their EVs. She stated that Tesla’s conduct has left Tesla drivers with worse repair options than those who have petrol and diesel cars.
Tesla’s dominance in the electric vehicle market is also noted in the lawsuit. The company accounted for the majority of electric car sales in the first eight months of last year, putting it in a dominant market position, which the lawsuit claims has resulted in a lack of competition and anticompetitive practices.
The lawsuit seeks to force Tesla to make manuals and diagnostic tools available to individuals and independent garages, and to repay customers for the amount they have allegedly been overcharged for repair services.
Tesla did not respond to a request for comment. The company has gradually begun to open its supercharger charging network to other carmakers.
