Tesla To Face Lawsuit For Alleged Monopoly On Vehicle Repairs And Parts

A U.S. judge has reportedly given the green light for Tesla Inc TSLA vehicle owners to proceed with a class-action lawsuit accusing the electric car company of monopolizing the market for repairs and parts.

What Happened: U.S. District Judge Trina Thompson in San Francisco ruled on Monday that Tesla owners can pursue a proposed class action alleging that the company coerced them into paying high prices and enduring long waits for vehicle repairs, under the threat of losing warranty coverage, reported Reuters. The owners claim that Tesla’s alleged coercion violated the federal Sherman antitrust law and California antitrust law.

The judge had previously dismissed the lawsuit in November. However, Thompson has now found evidence of a repairs monopoly in particular instances, including Tesla vehicles needing diagnostic and software updates only the company itself can provide, the report said.

Why It Matters: The complaint combined five lawsuits by Tesla owners. All of the five owners have paid for repairs and parts from Tesla since 2019 and allege that Tesla is monopolizing the market by not letting the owners use independent shops or parts made by other companies.

Tesla did not immediately respond to Benzinga‘s request for comment on the lawsuit.

The EV giant, unlike other automakers, also prefers to sell directly to customers rather than employ dealers.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.