Connect with us

News

Hydrogen Cars Were Supposed to Be the Future. Now Owners Are Suing Toyota

Several Mirai drivers have found themselves still paying for cars they don’t even drive anymore.

Published

on

Credit: Toyota USA/X

The promise of a hydrogen-fueled future has turned into a nightmare for hundreds of car owners in California. Drivers who purchased Toyota’s flagship fuel cell vehicle, the Mirai, are now suing the automaker and other key players, alleging they were misled about the viability of the hydrogen fueling network. With infrastructure collapsing and hydrogen prices surging, several Mirai drivers have found themselves still paying for cars they don’t even drive anymore.

The legal backlash comes as Toyota and other early champions of hydrogen-powered mobility face growing criticism over whether they pushed a technology too soon into an unprepared market.

A green gamble gone wrong

Sam D’Anna had barely driven his $75,000 Toyota Mirai in July 2022 when he realized something was wrong. His Mirai’s hydrogen tank was nearly empty. A dealership staffer at Roseville Toyota ran over to inform him that the nearest fueling station, in Citrus Heights, was offline. The next closest one was in West Sacramento, nearly 25 miles away. That should not be a problem for the Mirai due to its 402-mile EPA-estimated range, but since the car was almost empty, his range indicator showed only 22 miles.

Credit: Toyota USA/X

“I’ve already signed,” D’Anna told the Sacramento Bee. He ended up driving off the lot with the air conditioning turned off to conserve fuel. “This is bad. My heart was dropping into my stomach.”

D’Anna is now one of the plaintiffs in a class action lawsuit against Toyota, hydrogen station operator FirstElement Fuel, the Hydrogen Fuel Cell Partnership, and California Governor Gavin Newsom. 

The complaint, filed in Los Angeles Superior Court, accuses the defendants of fraud, negligence, and violations of consumer protection laws, among others. It alleges that Toyota knowingly sold vehicles reliant on a fueling ecosystem that was more than subpar, trapping buyers in loans for cars they can barely use.

Advertisement

D’Anna’s Mirai now sits unused under a tarp at his father’s house in El Dorado County. He still pays nearly $1,100 a month on the car, on top of a $1,200 monthly payment for a Ford F-150 hybrid he purchased in 2023 as a replacement.

Credit: Toyota USA/X

Infrastructure that never materialized

At its peak, California’s hydrogen vision appeared ambitious but achievable. The state pledged tens of millions of dollars to build a network of fueling stations. Automakers like Toyota, Hyundai, and Honda introduced sleek zero-emission vehicles powered by compressed hydrogen gas.

The pitch was compelling. Drivers could refuel in a few minutes and emit only water vapor, a seemingly reasonable if not preferable alternative to electric vehicles, which were still gaining traction.

But the real-world rollout failed to keep pace with the marketing. California currently has about 50 hydrogen fueling stations, as per data from the Hydrogen Fuel Cell Partnership. And in 2024, Shell exited the market and shuttered multiple locations.

Even when hydrogen stations are available, they are often plagued by maintenance issues and inconsistent supply. Hydrogen prices have tripled too, and what once cost $70 to fill now runs closer to $200, the Bee noted.

Credit: Toyota USA/X

In a statement to Teslarati, Patrick Peterson, auto expert at GoodCar.com, said, “Toyota and Hyundai were among the first to push hydrogen forward, and their vehicles are genuinely impressive. But the issue isn’t the tech, it’s everything around it. The infrastructure just isn’t ready. Most drivers aren’t willing to gamble on whether they’ll find a working hydrogen station or deal with issues like frozen fuel nozzles.”

Peterson said hydrogen’s biggest flaw is its lack of consistency. “EVs, for all their early bumps, have earned consumer trust. You’ve got widespread charging access, predictable performance, and fewer question marks. Hydrogen hasn’t hit that point yet. One bad fill-up can sour someone’s view of the entire platform.”

Advertisement

The price of faith in an idea

Ricky Yap of West Sacramento bought his 2016 Toyota Mirai in 2020 from Roseville Toyota. The vehicle, priced at $16,000, came with a prepaid fuel card worth the same amount. Initially, the fueling experience was “a bit cumbersome and confusing but not so bad,” Yap told the Bee. Then things got a lot worse.

Credit: Toyota USA/X

Shell’s closure of hydrogen stations led to long lines at the only remaining site in Sacramento. Hydrogen prices soared, and fueling, thanks to long lines at the station, ended up taking as long as four hours. Yap eventually stopped using the car altogether. He canceled the insurance and registered it as a non-operational vehicle.

“I used it very seldom just because of the fact I don’t like the stress,” he said. “I don’t want to pay insurance on a car that I can’t use every day.”

The lawsuit claims that Toyota and its partners misled consumers about the viability of the hydrogen ecosystem. Many owners were driven by environmental motivations, enticed by generous incentives and Toyota’s reputation. But the resale value of hydrogen cars has collapsed.

One plaintiff, Parita Shah, a physician assistant from Sacramento County, told the Bee that her dealership offered her only $2,000 for her $36,000 Mirai after stations near her home shut down just months after purchase.

Credit: Toyota USA/X

Consumers’ legal action turns up the pressure

In July 2025, frustrated Mirai owners organized a demonstration in Los Angeles to draw attention to what they called a broken promise. Protesters held signs reading “Mirai is a Lie,” “Toyota Made a Big Mistake,” and “Mirai Left Me Dry.”

Jason Ingber, attorney for D’Anna, Yap, and several other Mirai owners, spoke at the event. He accused the automaker of knowingly selling a product into a failing infrastructure.

Advertisement

“These are brands they thought they could rely on, and they go in, and they’re told ‘This is the next best thing!’ and it turns out, it’s not,” Ingber told KTLA 5

Ingber also shared a comment to Teslarati: “Toyota is still selling this car. It makes no damn sense. No fuel for drivers. The car doesn’t work as advertised,” he said.

Credit: Jason Ingber

Automakers offer limited relief

Toyota has acknowledged the fueling issues and confirmed that it stopped selling new Mirais in the Sacramento area over a year ago. In a statement to the Bee, the company said it is “working with affected Mirai customers to identify ways to help them on a case-by-case basis.”

Rental cars and service credits are among the remedies offered, but plaintiffs argued that these are not sustainable solutions. Shah stated that the rental process is quite cumbersome. In her case, she has been relying on a series of short-term rental cars provided by Toyota, which she must exchange every 25 days. She continues to make $326 monthly payments on he Mirai, which she cannot use.

Hyundai, whose Nexo SUV also relies on hydrogen fuel, has offered similar 21-day rental options. The company also issued a recall for about 1,600 Nexo SUVs in late 2024 due to possible hydrogen leaks and potential fires, warning owners to park their cars outside until repairs were made.

A shrinking market

Since 2012, just under 18,000 hydrogen-powered vehicles have been sold in California. Toyota accounts for the vast majority of them, but the pace of adoption has slowed dramatically. For comparison, California now has millions of battery electric and hybrid vehicles on the road.

Advertisement
Credit: Toyota USA/X

Policies have also seen a notable shift. California initially committed about $20 million annually to develop hydrogen fueling infrastructure. That number has since dropped to $15 million, and it’s no longer limited to light-duty stations. 

Josh Newman, a former state senator and current Mirai owner, told the Bee that government support has fallen short. “I blame the state. We were supposed to have 200 stations up and running for light-duty hydrogen vehicles by 2025,” he said.

In a statement to Teslarati, Alex Black, Chief Marketing Officer at EpicVIN, said the problem now extends beyond infrastructure. “Yes, hydrogen cars do have an image problem right now,” he said.

“Many just do not have confidence in the technology, largely because they have not seen very many out there, there are not many places to fill them up, and have heard about previous recall problems or problems. That tends to stick with them.”

Black added that public sentiment plays a powerful role. “When public sentiment turns, all activity comes to an end: reduced demand, reduced investment, and fewer stations are built. It’s a vicious circle.”

Credit: Toyota USA/X

A clean tech cautionary tale

Toyota’s investment in hydrogen was bold and well-intentioned. The technology offers apparent advantages, especially for long-haul or commercial use cases where quick refueling and long range are critical. But for personal mobility, hydrogen’s future remains uncertain, if not questionable, today.

The technology may still find its place in transportation. But for now, at least, consumer trust in hydrogen vehicles has been undermined, and infrastructure is still unreliable for those who have opted to become early adopters of the technology. For those who bought into the vision early, the experience has turned into a cautionary tale.

Advertisement

“People want something they can rely upon,” said Black in his statement to Teslarati. “And they want it to be easy. Hydrogen is not quite there yet.”

For Mirai owners still making monthly payments on cars they cannot drive, the idea of a hydrogen powered future is very sobering.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

Advertisement
Comments

Elon Musk

Tesla Board Chair discusses what is being done to protect CEO Elon Musk

Published

on

Credit: xAI

Tesla Board Chair Robyn Denholm met with Bloomberg this morning to discuss a variety of topics, but perhaps one of the most interesting was her comments on what is being done to protect company CEO Elon Musk.

After the assassination of right-wing political commentator Charlie Kirk this week, there have been concerns about Musk’s safety, as well as that of other high-profile business leaders and political figures.

Earlier this week, Musk said himself that his security detail would be increased significantly following Kirk’s death, a move that many investors and fans of the company had requested because of political violence.

Elon Musk assures Tesla investors he will enhance his security detail

“Definitely need to enhance security,” Musk said. Tesla spent $3.3 million on Musk’s security in 2024 and January and February 2025. For reference, Meta spent over $27 million on Mark Zuckerberg’s security last year, which is higher than any other tech CEO.

During Denholm’s appearance on Bloomberg TV earlier today, she stated that the company has been focused on Musk’s security detail for “many years,” especially considering he is one of the richest people on Earth and holds an incredible amount of influence.

“It is something that we take very seriously; he takes it very seriously as well. So, again, from a board perspective, it is something we’ve discussed at length,” Denholm said.

Denholm added that she believes “there is not anyone in a boardroom that is not touched by what has happened with Charlie Kirk.”

Although Musk’s political involvement has toned down significantly in the past, he still has enemies, especially based on groups that oppose him and the company specifically. Based on this week’s events, it feels that increased security is a necessary expense Tesla must account for.

Continue Reading

Investor's Corner

Tesla bear turns bullish for two reasons as stock continues boost

“I think from a trading perspective, it looks very interesting,” Nathan said, citing numerous signs of strength, such as holding its 200-day moving average and holding against its resistance level.

Published

on

Credit: Tesla Manufacturing

A Tesla bear is changing his tune, turning bullish for two reasons as the company’s stock has continued to get a boost over the past month.

Dan Nathan, a notorious skeptic of Tesla shares, said he is changing his tune, at least in the short term, on the company’s stock because of “technicals and sentiment,” believing the company is on track for a strong Q3, but also an investment story that will slowly veer away from its automotive business.

“I think from a trading perspective, it looks very interesting,” Nathan said, citing numerous signs of strength, such as holding its 200-day moving average and holding against its resistance level.

He also said he believes a rally for the stock could continue as it heads into the end of the quarter, especially as the $7,500 electric vehicle tax credit is coming to an end at the end of the month.

With that being said, he believes the consensus for Q3 deliveries is “probably low,” as he believes Wall Street is likely underestimating what Tesla will bring to the table on October 1 or 2 when it reports numbers for the quarter.

Tesla shares are already up over five percent today, with gains exceeding nine percent over the past five trading days, and more than fourteen percent in the past month.

While some analysts are looking at the performance of other Mag 7 stocks, movement on rates from the Federal Reserve, and other broader market factors as reasoning for Tesla’s strong performance, it appears some movement could be related to the company’s recent developments instead.

Over the past week, Tesla has made some strides in its Robotaxi program, including a new license to test the platform in the State of Nevada, which we reported on.

Tesla lands regulatory green light for Robotaxi testing in new state

Additionally, the company is riding the tails of the end of the EV tax credit, as inventory, both new and used, is running extremely low, generally speaking. Many markets do not have any vehicles to purchase as of right now, making delivery by September 30 extremely difficult.

However, there has been some adjustments to the guidelines by the IRS, which can be read here:

Tesla set to win big after IRS adjusts EV tax credit rules

Tesla is trading at around $389 at 10:56 a.m. on the East Coast.

Continue Reading

News

Tesla lands regulatory green light for Robotaxi testing in new state

This will be the third state in total where Tesla is operating Robotaxi, following Austin and California.

Published

on

Credit: Tesla

Tesla has landed a regulatory green light to test its Robotaxi platform in a new state, less than three months after the ride-hailing service launched in Texas.

Tesla first launched its driverless Robotaxi suite in Austin, Texas, back on June 22. Initially offering rides to a small group of people, Tesla kept things limited, but this was not to be the mentality for very long.

It continued to expand the rider population, the service area, and the vehicle fleet in Austin.

The company also launched rides in the Bay Area, but it does use a person in the driver’s seat to maintain safety. In Austin, the “Safety Monitor” is present in the passenger’s seat during local rides, and in the driver’s seat for routes that involve highway driving.

Tesla is currently testing the Robotaxi platform in other states. We reported that it was testing in Tempe, Arizona, as validation vehicles are traveling around the city in preparation for Robotaxi.

Tesla looks to make a big splash with Robotaxi in a new market

Tesla is also hoping to launch in Florida and New York, as job postings have shown the company’s intention to operate there.

However, it appears it will launch in Nevada before those states, as the company submitted its application to obtain a Testing Registry certification on September 3. It was processed by the state’s Department of Motor Vehicles Office of Business Licensing on September 10.

It will then need to self-certify for operations, essentially meaning they will need to comply with various state requirements.

This will be the third state in total where Tesla is operating Robotaxi, following Austin and California.

CEO Elon Musk has stated that he believes Robotaxi will be available to at least half of the U.S. population by the end of the year. Geographically, Tesla will need to make incredible strides over the final four months of the year to achieve this.

Continue Reading

Trending