Tesla faces old lawsuit that claims it monopolizes repair and parts market

Tesla has to face a lawsuit brought on by vehicle owners who stated the company has monopolized the repair and parts market for its vehicles.

The same judge dismissed the lawsuit in November after she stated, “Plaintiffs allege that defendant misled them about…how much maintenance its EVs are designed to need and how long that maintenance ought to take. But nowhere do plaintiffs allege that consumers are, in fact, unaware of the supposedly supracompetitive prices and exorbitant wait times.”

U.S. District Judge Trina Thompson in San Francisco reversed her ruling on Monday and said that the owners have a right to prove that Tesla forced them to pay high prices for repairs and wait extensive periods to have their cars fixed.

Judge Thompson is now giving the plaintiffs the opportunity to prove that Tesla is restricting consumers from getting parts or getting their vehicles serviced by third-party companies.

There was evidence that Tesla has a repairs monopoly because it has an “alleged refusal” to open authorized service centers, and it designs its vehicles to require both diagnostic and software updates that only the automaker can provide.

As of January, Tesla had 192 Service Center locations in 38 states. Service has been a pain point for Tesla for several years, and owners have complained that repair times are too long, loaner vehicles are hard to get, and customer service is not always the best.

Elon Musk will focus on advancing Tesla Service

Judge Thompson also said that OEMs were not allowed to sell parts “to anyone other than Tesla,” its parts sales are only available on a limited basis, according to Reuters.

A lawyer for the Plaintiffs, Matt ruan, said the court had a thoughtful and reasoned decision.

The case is labeled as Lambrix v Tesla Inc, U.S. District Court, Northern District of California, No. 23-01145.

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