Tesla Stock Plunges 3.69% Amid Lawsuit, Sales Slump

On April 21, 2025, Tesla's stock dropped by 3.69% in pre-market trading.

Tesla is currently facing a class-action lawsuit in the United States, alleging that the company intentionally accelerates the mileage count on its electric vehicles to push them out of warranty range more quickly, thereby avoiding repair costs. The plaintiff, Nyree Hinton, claims that the mileage readings on Tesla vehicles are not accurate representations of the actual distance traveled but are instead calculated based on energy consumption, driving habits, and a predictive algorithm. Hinton, a Tesla owner from Los Angeles, alleges that the mileage reading on his 2020 Model Y, which he purchased in December 2022, was inflated by at least 15%. The lawsuit seeks compensatory and punitive damages for Tesla owners in California, potentially involving over a million vehicles.

Tesla's sales in Europe have plummeted in the first quarter, with significant declines in Germany, Denmark, Sweden, and the Netherlands. Market analysts attribute this to outdated models and increased competition from more affordable Chinese electric vehicles. Additionally, Elon Musk's involvement in European politics has sparked public backlash, leading to violent attacks on Tesla facilities and vehicles.

Tesla's global vice president, Tao Lin, has criticized third-party accessories, warning that they pose significant safety risks. Lin's statement comes as Tesla faces legal challenges related to mileage data manipulation and as the company's stock price continues to fluctuate.