US court denied lawsuit against Tesla for monopolizing repairs and parts

A US judge has denied a lawsuit against electric car maker Tesla, which blames the company is forcing customers to pay high prices by monopolizing maintenance and parts replacement services.

Trina Thompson, a US District Judge in San Francisco said on Friday that customers in the proposed class action failed to prove that the alleged problems were “not generally known” when they brought their vehicles, or that they could not predict the costs to keep their vehicles running.

The District Judge also mentioned that this scenario doesn’t prove that Tesla restricted consumers around its services and parts simply because they had opted for their vehicles in the first place.

Trina also dismissed claims under California consumer protection laws. Meanwhile, customers may choose to amend their complaint consisting of five lawsuits and covered drivers who have paid for Tesla repairs and parts since March 2019.

The complaint mentioned that traditional engine cars can have repairs at dealerships or independent shops and use parts made by original manufacturers or other companies.

However, it’s also blamed that Tesla goes on its own route by prohibiting them from having vehicles serviced by the Austin, Texas-based company or its affiliated service centers and only buying Tesla parts.

You should know that Tesla sells its vehicles directly to consumers and does not choose to go with a network of franchisees.

From January to September, Tesla reported $6.15 billion of services and other automotive revenue, about 9% of its $71.6 billion total revenue. On the other hand, Vehicle sales accounted for $57.9 billion or 81% of total revenue.

(source)