Tesla drivers in the United States who alleged the company misrepresented the estimated driving ranges of its electric vehicles faced a setback in their bid for a class action lawsuit. U.S. District Judge Yvonne Gonzalez Rogers, based in Oakland, California, ruled that these drivers must pursue their claims through individual arbitrations rather than collectively through class action lawsuits, citing arbitration provisions agreed upon when the vehicles were purchased.
The plaintiffs claimed Tesla deceived consumers by exaggerating the mileage capabilities of its cars, leading them to make purchasing decisions based on inaccurate information. They also accused Tesla's CEO, Elon Musk, of misrepresenting driving range information displayed on vehicle dashboards. These allegations were supported by a Reuters investigative report in July, which uncovered Tesla's covert team dedicated to suppressing drivers' complaints about driving range.
Tesla and its legal representatives did not offer immediate comments on the ruling. Tesla has consistently dismissed the claims made in the lawsuits as lacking merit. Attorneys for the plaintiffs either refrained from commenting or were unavailable for immediate response.
Judge Rogers' ruling did not delve into the substance of the drivers' allegations. She neither dismissed the lawsuits nor ruled out the possibility of issuing an injunction against Tesla if the drivers successfully pursued arbitration under California's laws regarding unfair competition and other relevant statutes.
The attorneys representing the drivers criticized Tesla's push for individual arbitration, characterizing it as an attempt to evade collective accountability for alleged deceptive practices.
In January, Tesla revised its driving-range estimates for its electric vehicles in response to a new U.S. government regulation aimed at ensuring automakers provide accurate representations of real-world performance.
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