Three Tesla owners have sued the automaker in a class action lawsuit that was filed on August 2, 2023, after a report from Reuters last week claims the company “exaggerates” its range ratings.
Teslarati examined the complaint, and we are here to give you a breakdown of what the suit says and what the three plaintiffs are suing Tesla for.
The Plaintiffs
Tesla is being sued by James Porter, Bryan Perez, and Dro Esraeili Estepanian, who state in their complaint against the automaker that their action “arises out of Tesla’s false advertising of its electric vehicles’ range, which Tesla grossly overvalued when selling the vehicles to consumers.”
According to the complaint, Porter owns a Model Y Performance and noticed a discrepancy in his vehicle’s range was compared to what it told him:
“After taking delivery of his Tesla vehicle in June 2022, Plaintiff Porter fully charged his vehicle to 100% battery charge and took a 2-hour trip to visit family, approximately 92 miles away. When he arrived at his destination, Plaintiff Porter noticed that the vehicle was left with approximately 40% charge.”
Perez owns a Model 3 Long Range, and the complaint states he had the same issue:
“After receiving his Tesla vehicle, Plaintiff Perez fully charged his vehicle to 100% battery charge and took an approximately 90-mile trip to visit his parents. After returning home from the approximately 180-mile round trip, he noticed that his vehicle showed that it had roughly 10-15% charge remaining.”
Estepanian also has a Model 3 Long Range, and the complaint describes a similar situation:
“Plaintiff Estepanian travels 140 to 150 miles round trip for his daily commute, and he routinely charges his vehicle to 90% battery charge (which equates to approximately 299 miles), per Tesla’s recommendation. Based on a 90% battery charge (and 299-mile starting range), he typically returns from his approximately 150-mile round trip each day and his Tesla vehicle’s screen displays that approximately 100 to 110 miles of range remain, which equates to roughly 33% battery charge remaining. Thus, Plaintiff Estepanian’s electric vehicle consistently loses approximately 189 miles of range during his daily commute—despite only driving approximately 140 to 150 miles round trip each day.”
The Plaintiffs’ Claims
The plaintiffs state that range is a key feature of electric vehicles and is “one of the most important features that consumers generally consider when purchasing an EV, because it correlates to the distance they can travel before needing to recharge the vehicle.”
Throughout the suit, the complaint shows images of Tesla’s website, highlighting range ratings and other “key features,” including top speed and acceleration.
They also include other pieces of evidence that seem to indicate Tesla has exaggerated range estimates.
One part of the complaint states:
“Tesla’s tactics to inflate the range estimates for its vehicles has continued. Recently, South Korean regulators fined Tesla for false advertising the ranges of its vehicles. Specifically, the Korea Fair Trade Commission found that Tesla exaggerated the “driving ranges of its cars on a single charge, their fuel cost-effectiveness compared to gasoline vehicles as well as the performance of its Superchargers.”
They also stated that other car companies to do not exaggerate range ratings, citing Recurrent’s testing of the Ford Mustang Mach-E, Chevrolet Bolt, and Hyundai Kona:
“Other electric vehicle manufacturers do not overestimate the range of their vehicles to the same extent. For example, Recurrent tested the Ford Mustang Mach-E, the Chevrolet Bolt, and the Hyundai Kona—all electric vehicles and direct competitors to Tesla model vehicles—and found their estimated ranges to be more accurate. In fact, the Hyundai Kona generally underestimated the range the vehicle could travel before requiring a recharge.”
Allegations in the Class Action Suit
The plaintiffs seek to represent anyone in California who purchased any Tesla vehicle and hope to solve questions including:
- a. Whether Tesla model vehicles fail to deliver the advertised estimated vehicle range in normal driving conditions;
- b. Whether Tesla exaggerated its advertised estimated vehicle ranges;
- c. Whether Tesla knew that its advertised estimated vehicle ranges were exaggerated and could not be met under normal driving conditions;
- d. When Tesla gained such knowledge;
- e. Whether Tesla designed, manufacture, marketed, advertised, sold, or otherwise placed its model vehicles into the stream of commerce with such knowledge;
- f. Whether Tesla intentionally concealed the fact that its advertised estimated vehicle ranges were exaggerated or otherwise could not be met under normal driving conditions;
- g. Whether Tesla’s conduct to divert complaints from Class Members who voiced concerns over their Tesla model vehicle’s range violated the terms of Tesla’s warranties;
- h. Whether Plaintiffs and Class Members were harmed by the fraud and deceptive practices alleged herein;
- i. Whether Tesla was unjustly enriched by its deceptive practices; and
- j. Whether Plaintiffs and the Class are entitled to equitable or injunctive relief
The case is 3:2023cv03878, Porter et al v. Tesla, Inc., and has been assigned to Judge Laurel Beeler.
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News
Tesla bolsters App with new safety, insurance, and storage features
The Tesla Smartphone App is one of the biggest and best features and advantages owners have. Everything from moving the vehicle with Summon, to getting Navigation sent to the car, to preconditioning the cabin can be done with the Tesla App.
Tesla is bolstering its smartphone App with a series of new features to streamline operations for owners. The new additions include fixes to safety, its in-house insurance offering, and storage management for Dashcam clips.
The Tesla Smartphone App is one of the biggest and best features and advantages owners have. Everything from moving the vehicle with Summon, to getting Navigation sent to the car, to preconditioning the cabin can be done with the Tesla App.
But in classic Tesla fashion, the company is aiming to improve the offerings of the app, and it is doing so with a handful of new features. They were first discovered by Tesla App Updates.
Tesla Insurance – Safety Score 3.0
This is truly part of the Spring 2026 Update, but Tesla has now given more transparency on how FSD has saved people money on their premiums.
Tesla intertwines FSD with in-house Insurance for attractive incentive
Additionally, Tesla is now automatically awarding a Safety Score of 100 for every mile traveled on Full Self-Driving (Supervised).
Update Tracking
Updates traditionally appear on the App or on the Center Touchscreen in the car. There is nothing better than seeing that Green Arrow at the top of the screen, or opening your app and seeing that there is a Software Update available.
Now, there will be no need to manually check the app and initiate the download. Tesla is enabling a new feature that will automatically download updates for you.
Storage Management
Your USB drive can now be remotely formatted, and old Dashcam clips can be deleted straight from the phone. When you record a lot of things using the Dashcam feature, that storage fills up pretty quickly.
Now, manually deleting the Dashcam videos is easier than ever.
Trailer Light Test
This is perhaps the coolest and most crucial addition to the Tesla App, as those who tow and haul will now be able to trigger a diagnostic light sequence from the app while standing behind your trailer to ensure the brake lights work.
Verifying your trailer lights are connected properly and operating normally and as intended is normally a massive hassle.
Now, a new trigger will be available to initiate a diagnostic light sequence directly from your phone.
News
Tesla Robotaxi-only Superchargers are starting to appear
For Tesla, these Robotaxi-only Superchargers represent more than convenient parking spots. They are the first bricks in a vertically integrated autonomy platform—vehicles, energy, and software working in seamless concert.
Tesla is starting to build out Robotaxi-only Superchargers as the company is truly leaning on its Full Self-Driving and autonomy efforts to solve passenger travel.
Last week, the company filed pre-permits in Arizona’s East Valley for two dedicated, non-public charging sites stocked with next-generation V4 Superchargers. The filings mark the first visible evidence of purpose-built infrastructure exclusively for autonomous Tesla vehicles, as they state they are not for public use.
In Chandler, Tesla plans to install 56 V4 stalls on an industrial parcel along South Roosevelt Avenue. Site documents describe a high-capacity setup supported by new SRP transformers, switching cabinets, and upgrades to existing underground lines.
A second site in Mesa, located at 5349 E Main Street in another industrial zone, carries the same private-use designation. Both locations sit well away from public roads and customer traffic, ensuring the chargers serve only Tesla’s internal fleet.
The sites were spotted by Supercharger observer MarcoRP.
On the same day, Tesla also submitted a draft for another proposed location in the city of Mesa, also listed as private use.
This site is located in an industrial area on the east side of the city. pic.twitter.com/jCC1IsKKKw
— MarcoRP (@MarcoRPi1) April 17, 2026
Phoenix’s East Valley offers an ideal launchpad for Robotaxi Supercharging: the location has a clean, grid-like street layout and year-round mild weather that minimizes camera degradation. Additionally, Arizona has welcomed self-driving pilots since Waymo’s early days.
By securing private depots now, Tesla can optimize charging cycles, reduce downtime, and maintain full control over vehicle hygiene and security, critical factors for high-utilization Robotaxi operations.
The type of Supercharger is telling as well, as they are V4, Tesla’s fastest and most efficient buildout.
V4 stalls deliver faster power and support bidirectional charging, features that will let idle Robotaxis feed energy back to the grid during off-peak hours. Because the sites are closed to the public, Tesla avoids congestion, vandalism risks, and the scheduling conflicts that plague shared stations.
The timing is telling. With unsupervised Full Self-Driving hardware already rolling out across the lineup and Cybercab production targets looming, Tesla is shifting from vehicle development to ecosystem readiness.
Charging infrastructure has historically been the gating factor for ride-hailing scale; building it ahead of the vehicles signals confidence that regulatory and technical hurdles are nearing resolution.
Tesla has been spotted testing Cybercab units in Arizona over the past few months, as well.
Interestingly, the permits show V4 Superchargers in the plans, although Cybercab will likely utilize wireless charging:
Tesla Cybercab spotted with interesting charging solution, stimulating discussion
For Tesla, these Robotaxi-only Superchargers represent more than convenient parking spots. They are the first bricks in a vertically integrated autonomy platform—vehicles, energy, and software working in seamless concert.
It appears Tesla is preparing to begin building out Robotaxi-only Superchargers to avoid the congestion and keep its autonomous fleet charged up to get ride-hailers to their destinations.
Elon Musk
ARK’s SpaceX IPO Guide makes a compelling case on why $1.75T may not be the ceiling
ARK Invest breaks down six reasons SpaceX’s $1.75 trillion IPO valuation may be justified.
ARK Invest, which holds SpaceX as its largest Venture Fund position at 17% of net assets, has published a detailed investor guide to why a SpaceX IPO may be grounded in a $1.75 trillion target valuation.
The financial case starts with Starlink, SpaceX’s satellite internet constellation, which has surpassed 10 million active subscribers globally as of early 2026, with 2026 revenue projected to exceed $20 billion. ARK’s research puts the total satellite connectivity market opportunity at roughly $160 billion annually at scale, and Starlink is adding customers faster than any telecom network in history. That growth alone would justify a substantial valuation.
Additionally, ARK notes that SpaceX has reduced the cost per kilogram to orbit from roughly $15,600 in 2008 to under $1,000 today through reusable Falcon 9 hardware. A fully operational Starship targeting sub-$100 per kilogram would represent a significant cost decline and open markets that do not currently exist. SpaceX executed a staggering 165 missions in 2025 and now accounts for approximately 85% of all global orbital launches. That infrastructure position took decades to build and would be nearly impossible to replicate at comparable cost.
SpaceX officially acquires xAI, merging rockets with AI expertise
The February 2026 merger with xAI added a layer to the valuation that straightforward financial models struggle to capture. ARK argues that at sub-$100 launch costs, orbital data centers could deliver compute roughly 25% cheaper than ground-based alternatives, without power grid delays, permitting friction, or land constraints. Musk has stated a goal of deploying 100 gigawatts of AI computing capacity per year from orbit.
The $1.75 trillion figure itself is not a conventional earnings multiple. At roughly 95x trailing revenue, it prices in Starlink’s adoption curve, Starship’s cost trajectory, and the orbital compute thesis together. The public S-1 prospectus, due at least 15 days before the June roadshow, will give investors their first complete look at the financials to test those assumptions. ARK’s position is that the track record earns the benefit of the doubt. Fully reusable rockets were considered unrealistic for years. Starlink was considered financially unviable. Both happened on timelines that surprised skeptics.