Tesla, Elon Musk face class action lawsuits and nationwide recalls

Tesla class action lawsuits, recalls overview: 

• Who: Tesla Inc., Tesla Finance LLC, Elon Musk, America PAC, two federal agencies, and Treasury Secretary Scott Bessent have all been named in recent class action lawsuits amid multiple Tesla recalls.
• Why: The lawsuits allege odometer fraud, privacy violations, wage theft, and breach of contract. Tesla has also issued recalls over trim panel and steering issues.
• Where: The lawsuits were filed in federal courts across California, Pennsylvania, and Washington, D.C., while the recalls affect Tesla owners nationwide.

Tesla and its CEO Elon Musk are under increasing legal scrutiny as a wave of class action lawsuits and recalls capture national attention. 

Consumers and taxpayers have filed class action lawsuits targeting the automaker’s warranty practices, data privacy violations, and broken promises regarding Musk’s political campaign work. At the same time, Tesla has issued multiple recalls affecting hundreds of thousands of vehicles, raising safety concerns for Cybertruck, Model 3, and Model Y owners across the country.

Tesla accused of manipulating odometer readings to avoid warranty obligations

A California consumer filed a class action lawsuit against Tesla Inc. and Tesla Finance LLC, claiming the automaker uses algorithmic calculations to inflate odometer readings and prematurely expire warranty coverage. The complaint alleges Tesla’s energy consumption metrics can overstate actual mileage by as much as 117%, directly harming owners by limiting access to free repairs and services.

The plaintiff seeks to represent a class of California residents who purchased new or used Teslas for personal or household use and were affected by the alleged odometer fraud.

Tesla recalls more than 46K Cybertruck vehicles over trim panel concerns

Tesla issued a recall for more than 46,000 of its Cybertruck vehicles in March over concerns an exterior trim panel could delaminate and detach from the vehicle, posing a road hazard. 

The recall, the eighth involving the Tesla Cybertruck since it was made available to the public in November 2023, includes all model year 2024 and 2025 Cybertruck vehicles manufactured from November 13, 2023, to February 27, 2025. 

Tesla plans to remedy the recall issue by having its services replace the cant rail on the recalled Cybertruck vehicles free of charge.

Steering concerns prompt recall of 370K Model 3 and Model Y vehicles

Tesla issued a recall for more than 370,000 of its Model 3 and Model Y vehicles over concerns a circuit board could malfunction in the vehicles, making it difficult to steer.

The Tesla recall involves certain model year 2023 Model 3 and Model Y vehicles with operating software prior to 2023.38.4. 

“A loss of power steering assist can require greater steering effort, especially at low speeds, increasing the risk of a crash,” the recall says.

The automaker remedied the recall issue via a free over-the-air software update, according to the Tesla recall. 

Class action says Elon Musk, DOGE engaged in ‘unprecedented’ intrusion of privacy

A group of taxpayers and government benefit recipients filed a class action lawsuit in February against Musk and others over claims that DOGE unlawfully accessed federal computers containing personal and financial information of millions of individuals. 

The class action lawsuit claims Musk, together with DOGE, engaged in an “unprecedented” and massive intrusion of privacy. 

“Millions of people cannot avoid engaging in financial transactions with the federal government and, therefore, cannot avoid having their sensitive personal and financial information maintained in government records,” the Musk DOGE class action says.

The class action lawsuit also names as defendants the U.S. Office of Personnel Management, the Department of the Treasury and Treasury Secretary Scott Bessent, whom the group argue unlawfully disclosed the information to Musk and DOGE members without a legitimate need to do so. 

Class action claims Elon Musk failed to pay petition signers in Pennsylvania

A separate class action filed in Pennsylvania accuses Elon Musk and America PAC of breaking a promise to pay individuals who helped collect political petition signatures. According to the lawsuit, hundreds of participants were told they would earn $2,500 each for gathering signatures to support candidates backed by Musk’s political interests, but never received compensation.

The complaint alleges breach of contract, wage law violations, and unjust enrichment. Plaintiffs seek damages and back pay for themselves and similarly affected workers.

Have you been injured by Tesla or affected by a Tesla recall? Let us know in the comments.

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