Lawsuit accuses Tesla of exaggerating driving range to boost EV sales

A group of Tesla owners this week sued the electric vehicle maker over its mileage range projections, accusing the company of inflating in advertisements the distance that its cars and SUVs can travel on a single charge.

The lawsuit, which seeks class-action status in the Northern District of California, demands undisclosed monetary damages and a court order prohibiting Tesla from “falsely advertising the estimated ranges of its model vehicles.”

Tesla cars are parked in front of a showroom and service center in Burlingame, California. The EV maker faces accusations that it deliberately mass-canceled service appointments for customers who said their cars weren't getting the battery range Tesla had advertised.

“Understanding that this (range) would be an important feature (if not the most important feature) to many customers, and preying on this fact,” the suit argues, “Tesla marketed its electric vehicles as having a grossly overvalued range in an effort to increase sales numbers.”

Representatives for Tesla did not respond to a request for comment. The company stopped responding to press inquiries in 2020.

South Korean regulators in January fined Tesla $2.2 million for exaggerating the range of its vehicles in cold weather.

Last week, Reuters published an investigation that found “Tesla employees had been instructed to thwart any customers complaining about poor driving range from bringing their vehicles in for service.” The company created a secretive “Diversion Team” to cancel customer appointment requests to examine battery range, Reuters reported, citing several unnamed sources.

Tesla algorithms show drivers “rosy” estimates of their driving range until the battery power falls below 50%, Reuters reported, when more accurate readings kick in. The lawsuit filed Wednesday accuses CEO Elon Musk of “directly” ordering the use of overly optimistic algorithms.

Reuters said its findings about Tesla’s advertised driving ranges and battery projections were verified by three automotive experts who studied or tested the vehicles.