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- Tesla is facing a lawsuit from customers over its vehicles' driving range estimates.
- The suit accuses the company of "false advertising," claiming Tesla overvalued the cars.
- The lawsuit cites a Reuters investigation which found the carmaker had exaggerated its cars' range.
Tesla is facing a lawsuit from some customers over its vehicles' driving range estimates.
The plaintiffs have accused the electric vehicle company of "false advertising," claiming in court documents Tesla overvalued its cars to consumers.
The lawsuit cites a Reuters investigation which found that the carmaker had exaggerated vehicles' driving range, the distance cars can travel before needing to recharge. The report cited a source familiar with an early design of Tesla software, who claimed the EV maker rigged the range-estimating software on the cars' dashboards.
The Reuters investigation also cited sources with knowledge of a secret team set up to cancel service appointments from drivers with range issues. The secret "Diversion Team" set up in Las Vegas was the result of a flood of complaints about driving range concerning cars that often did not require repairs, per Reuters.
The lawsuit, which is bought by three Tesla owners, says that the company engaged in fraud and unfair competition. It states: "Had Tesla honestly advertised its electric vehicle ranges, consumers either would not have purchased Tesla model vehicles, or else would have paid substantially less for them."
The suit claims driving range is "one of the most important features" for consumers purchasing an electric vehicle. The distance EVs can travel on one charge is one of the main disadvantages the cars face in comparison with gas vehicles.
The three plaintiffs detail instances of lower-than-expected range in the suit which is seeking class-action status. One Tesla owner, James Porter said in the lawsuit "his vehicle lost approximately 182 miles of range—despite only driving 92 miles."
Representatives for Tesla and the plaintiffs did not immediately respond to Insider's request for comment, made outside normal working hours.