Tesla (TSLA) faces 'right to repair' antitrust class actions

A new antitrust class action has been filed against Tesla (NASDAQ: TSLA) accusing the company of unlawfully curbing competition for maintenance and replacement parts, which the lawsuit claims has resulted in exorbitant prices and long wait times for repairs.

The lawsuits, filed on Tuesday and Wednesday in federal court in San Francisco, allege that Tesla designed its electric vehicles, warranties, and repair policies to discourage owners and lessees from using independent shops outside of Tesla's control.

"Tesla needs to open up its ecosystem and allow competition for the servicing of Tesla [vehicles] and sales of parts," said plaintiffs’ lawyer Matthew Ruan of Freed Kanner London & Millen, who filed one of the proposed class actions.

Tesla joins the likes of Harley-Davidson (NYSE: HOG) and Deere & Co (NYSE: DE) facing "right to repair" antitrust litigation over alleged exclusionary conduct.

The lawsuits call for Tesla's repair services and parts monopoly to be "dismantled" and for the company to be ordered to make its repair manuals and diagnostic tools "available to individuals and independent repair shops at a reasonable cost."

The proposed class in both cases would include anyone who has paid Tesla for repairs or parts since March 2019.

Tesla, the world's most valuable automaker, recorded revenue of $24.32 billion for the fourth quarter. The electric vehicle maker delivered 405,278 vehicles in the quarter.

The cases are Virginia Lambrix v Tesla Inc, U.S. District Court, Northern District of California, No. 3:23-cv-01145; and Robert Orendian v. Tesla, No. 3:23-cv-01157.

Shares of TSLA are down 3.37% in afternoon trading on Wednesday.

By Michael Elkins | [email protected]

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