Attempts to file a class action lawsuit against Tesla appear to be multiplying by two. Towards the end of February, two US law firms simultaneously declared that they would begin similar legal actions, in this case on behalf of investors who had suffered stock market losses as a result of Tesla management’s false claims on the autopilot system and FSD. Two further class action lawsuits were filed this week as well: Due to excessively expensive maintenance and parts, Tesla owners are now demanding a refund and making adjustments.
It’s claimed that Tesla eliminated competition
According to both complaints, Tesla created its electric cars, warranties, and maintenance guidelines with the intention of discouraging consumers from using external repair facilities that are not under its direct control. Both were submitted this week in California. As of now, the courts have only recognised them as class action lawsuit proposals. There are no specific dollar amounts given. One of the attorneys involved told Reuters that it might affect hundreds of thousands of Tesla consumers and result in damages worth hundreds of millions of dollars.
The Telegraph reported that one of the applications claims that Tesla has a “monopoly” on fixing its own electric cars and that this “monopoly” must be broken. This application also claims that anti-competitive behaviour has taken place. Prices for components and repairs are extraordinarily high and client wait times are lengthy because there is no competition in these markets. The firm or workshops it allowed could only get in touch with these directly, which is against US antitrust rules.
In addition to compensating for prior financial losses, Tesla will reportedly be required to make manuals and diagnostic tools accessible to individuals and independent repairers. The former, at least, has been freely accessible through the web for a while, as has a Tesla parts catalogue that is currently free and includes instructions for updating it.
Accumulated proof of power abuse
Yet according to a complaint from one of the legal firms, there is strong proof that Tesla abused its market dominance. A “malicious set” of anti-competitive acts by the defendant, according to the lawsuit, effectively blocked access to information, resources, and parts needed to maintain and repair its electric vehicles. The law firm demonstrates how these illegal methods raise the associated expenses and time. Reports state that enquiries about the claims were originally unanswered by Tesla representatives.
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