Tesla is confronting a lawsuit filed by vehicle owners who claim that the company has monopolized the repair and parts market for its vehicles.
U.S. District Judge Trina Thompson in San Francisco reversed her previous dismissal of the lawsuit on Monday, stating that the owners have the right to prove that Tesla forced them to pay high prices for repairs and endure lengthy wait times to have their cars fixed.
Judge Thompson is allowing the plaintiffs to demonstrate that Tesla is restricting consumers from obtaining parts or having their vehicles serviced by third-party companies.
The lawsuit alleges that Tesla has a repairs monopoly due to its “alleged refusal” to open authorized service centers and its design of vehicles that require diagnostic and software updates only provided by the automaker.
As of January, Tesla had 192 Service Center locations in 38 states. Service has been a recurring issue for Tesla, with owners complaining about long repair times, difficulty obtaining loaner vehicles, and inconsistent customer service.
Judge Thompson also noted that Tesla’s parts sales are limited, as original equipment manufacturers (OEMs) are not allowed to sell parts to anyone other than Tesla.
Matt Ruan, a lawyer for the plaintiffs, expressed satisfaction with the court’s decision, describing it as “thoughtful and reasoned.”
The case is identified as Lambrix v Tesla Inc, U.S. District Court, Northern District of California, No. 23-01145.
