New Antitrust Class Actions Suit Takes On Tesla With ‘Right To Repair’ Allegations

Two antitrust class action lawsuits have been filed against Tesla, alleging the company unlawfully restricts competition for maintenance, repairs, and replacement parts for electric vehicles, Reuters reported. This is making it more costly and time-consuming for owners to access these services.

The lawsuits, which were brought in federal court in San Francisco, claim that Tesla has designed their electric vehicles as well as repair and warranty policies in such a way that it makes customers less likely to use independent service providers. The complaints were filed on Tuesday and Wednesday.

“Tesla needs to open up its ecosystem and allow competition for the servicing of Tesla [vehicles] and sales of parts,” said plaintiffs lawyer Matthew Ruan of Freed Kanner London & Millen, who filed one of the proposed class actions.

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Two lawsuits have been filed recently alleging that Tesla, was negligent in their repair and parts services for California residents since March 2019. Both complaints allege a potential class of at least hundreds of thousands of people who are eligible for damages, estimated to total several hundred million dollars. While no damages amount was specified, the proposed class covers those who paid for services or parts from the company within this time period.

Tesla, the world’s most valuable automaker, recorded revenue of $24.32 billion for the fourth quarter. The company delivered 405,278 vehicles in the quarter.

Tesla joins other major vehicle makers facing “right to repair” antitrust litigation over alleged exclusionary conduct.