In a shocking twist, Tesla owners alleging false advertising in estimated driving ranges for their electric vehicles were dealt a heavy blow as a federal judge ruled against their bid for class action lawsuits. U.S. District Judge Yvonne Gonzalez Rogers, stationed in Oakland, California, made the decisive call, stating that owners had already agreed to handle disputes through individual arbitrations upon purchasing their vehicles.
The accusations hurled at Tesla revolved around claims of fraud, with plaintiffs asserting that the company lured consumers into buying their cars by inflating the potential distance they could travel on a single charge. Adding to the gravity of the situation, allegations surfaced that Tesla, under the helm of billionaire CEO Elon Musk, had manipulated dashboard displays to misrepresent driving ranges. These claims gained further traction with the revelation from a July Reuters special report, exposing a clandestine team within Tesla dedicated to suppressing drivers’ complaints regarding range.
Despite these allegations, Tesla and its legal representatives remained tight-lipped in response to requests for comments. Dismissing the lawsuits as “unmeritorious,” the company’s silence spoke volumes. On the plaintiffs’ side, attorneys either chose not to comment or failed to respond promptly to inquiries.
However, Judge Rogers’ ruling didn’t delve into the substance of the drivers’ claims. Leaving the door ajar for potential future actions, she hinted at the possibility of issuing an injunction against Tesla should the drivers succeed in arbitrating their claims under California’s stringent unfair competition laws and other relevant provisions.
Tesla’s move to push for individual arbitration was met with strong opposition from the drivers’ legal teams, who branded it as an attempt to evade collective responsibility for what they termed as “deceptive conduct.” Meanwhile, Tesla preemptively adjusted its driving-range estimates in January, in tandem with the enforcement of a new U.S. government vehicle-testing regulation aimed at ensuring accurate reflection of real-world performance.
As the legal battle rages on, the fate of Tesla’s reputation and accountability hangs in the balance, with each ruling shaping the narrative of this electrifying saga.
