In a significant victory for Tesla, a U.S. judge has dismissed an antitrust lawsuit that claimed the electric car company had monopolized the markets for vehicle maintenance and replacement parts. The lawsuit alleged that Tesla forced customers to pay high prices and endure long waits for repairs. However, U.S. District Judge Trina Thompson in San Francisco ruled that the customers didn't demonstrate that they were unaware of the alleged issues at the time of their vehicle purchase or that they couldn't estimate the costs of maintaining their vehicles.
Judge Thompson also stated that the customers failed to prove Tesla coerced them into using the company's services and parts solely because they had purchased a Tesla vehicle. While the plaintiffs argued that Tesla misled them about the required maintenance and the duration it should take, the judge noted that nowhere did they claim that consumers were unaware of the supposedly exorbitant prices and wait times for repairs.
Furthermore, the judge dismissed claims under California consumer protection laws. However, she did offer the opportunity for the customers to amend their complaint. This lawsuit combined five separate lawsuits and covered drivers who paid for Tesla repairs and parts from March 2019 onwards.
The lawsuit emphasized that unlike traditional vehicles, where customers have the choice to get repairs done at dealerships or independent shops with parts from various manufacturers, Tesla requires customers to have their vehicles serviced only by the company or its approved service centers. Moreover, Tesla exclusively provides its own parts. Unlike most other automakers, Tesla sells its vehicles directly to consumers rather than using a franchisee network.
Tesla's revenue from services and other automotive sources amounted to $6.15 billion from January to September this year, accounting for approximately 9% of its $71.6 billion total revenue. The majority of the company's revenue, $57.9 billion or 81%, still comes from vehicle sales.
While this ruling is undoubtedly a positive outcome for Tesla, it remains to be seen whether the customers will choose to amend their complaint or pursue any further legal actions against the company. Neither Tesla nor the customers' lawyers have immediately responded for comment following the judge's decision.