Tesla sued by customers for exclusive rights to repair and sell ‘expensive’ parts

A Tesla Model S owner in California has filed a class-action lawsuit against electric car maker Tesla, alleging that it charged customers exorbitant prices for components when it came to repairs and made them having to wait too long for a fix due to an alleged monopoly on service options.

The lawsuit was filed Tuesday (March 14) in a San Francisco court on behalf of Virginia M. Lambrix, Bloomberg reported. In the filing, the customer claims owners of traditional vehicles have many options when their vehicle breaks down, such as going to a dealership, a private garage, or repairing it themselves with manufacturer-provided parts. original equipment manufacturer (OEM) or provided by a third party.

Meanwhile, Tesla car owners only have one choice: Get their vehicle serviced at the company, or a network of Tesla-approved service centers that use only Tesla parts. The key, Lambrix said, lies in Tesla’s use of its market power to limit repair and maintenance services, citing antitrust laws.

According to the complaint, these practices have caused Tesla vehicle owners “to suffer prolonged delays in the repair or maintenance of their electric vehicles, pay super competitive prices for those parts, and repairs after they are finally delivered”.

Tesla reported $6,009 billion in revenue for other auto services and sales last year, but its customer service has long been a subject of unhappiness among customers. There have been reports of owners being forced to wait weeks for appointments for vehicles delivered with missing parts.

Earlier, billionaire Elon Musk’s car company was investigated by US regulators over complaints that the steering wheel of Model Y cars could fall off while driving.

The US National Highway Traffic Safety Administration (NHTSA) said that the unit has received information about two incidents involving Tesla vehicles, in which the steering wheel was detached from the steering column while the vehicle owner was driving. SUV of the year 2023. Both incidents resulted in no loss of life.

Although CEO Elon Musk vowed to improve service in North America last year, subsequent reports suggest the automaker is using untrained technicians, which could indicate frustrating the owners of this class action.

References: Bloomberg, Carscoops