Tesla to Face Lawsuit for Alleged Monopoly on Vehicle Repairs and Parts – Tesla (NASDAQ: TSLA)

An American judge would have given the green light for Tesla Inc. TSLA vehicle owners must file a class action lawsuit accusing the electric car maker of monopolizing the repairs and parts market.

What happened: U.S. District Judge Trina Thompson in San Francisco, ruled Monday that Tesla owners could file a class-action lawsuit, alleging the company forced them to pay high prices and endure long waits for repairs to their vehicles under threat of losing their warranty coverage, reported Reuters. The owners claim Tesla's alleged coercion violated the federal Sherman Antitrust Act and California Antitrust Law.

The judge previously dismissed the suit in November. However, Thompson has now found evidence of a repair monopoly in special cases, including for Tesla vehicles requiring diagnostics and software updates that only the company itself can provide, the report said.

Why is this important: The complaint combined five lawsuits filed by Tesla owners. The five owners have paid for repairs and parts from Tesla since 2019 and allege that Tesla is monopolizing the market by not allowing owners to use independent shops or parts made by other companies.

Tesla did not immediately respond Benzingarequest for comment on the lawsuit.

The electric vehicle giant, unlike other automakers, also prefers to sell directly to customers rather than employing dealerships.

Photo via Shutterstock

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