Musk’s Tesla sued by drivers over repair charges and waiting times

Elon Musk pauses and looks down as he speaks during a press conference - JIM WATSON/AFP via Getty Images

Elon Musk pauses and looks down as he speaks during a press conference – JIM WATSON/AFP via Getty Images

Tesla owners have sued Elon Musk’s electric carmaker for allegedly abusing its stranglehold on repairs to overcharge and impose lengthy delays.

A class action lawsuit filed in California says that “anticompetitive” conduct by Tesla means owners are unable to go to independent repair shops or install third-party parts.

Virginia Lambrix, a Tesla Model S owner who filed the lawsuit, said that Tesla drivers suffered from worse repair options than those who had petrol and diesel cars, and that the company’s conduct had been copied by other electric vehicle companies.

“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 [electric vehicles],” the lawsuit said.

It said that Tesla owners only have the option of using the company or approved service centres, claiming this was a breach of US anti-monopoly laws.

“But for Tesla’s anti-competitive and monopolistic course of conduct, Tesla owners would have similar maintenance and repair options as purchasers of ICE [internal combustion engine] vehicles,” the lawsuit said.

“Such competition would inevitably lead to increased supply and lower prices.”

Tesla has said that electric vehicles require less maintenance and fewer repairs than petrol-powered cars, but independent reviewers have questioned its claims.

Tesla Model 3 vehicles are seen during a delivery event at its factory - REUTERS/Aly Song/File Photo

Tesla Model 3 vehicles are seen during a delivery event at its factory – REUTERS/Aly Song/File Photo

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.

It said that Tesla closely controls access to its diagnostic tools, which are required to make repairs, charging $3,000 (£2,486) 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 did not respond to a request for comment.

The company has gradually begun to open its supercharger charging network to other carmakers.

Source: https://finance.yahoo.com/news/musk-tesla-sued-drivers-over-150238085.html