June 18 (Reuters) - A U.S. judge said Tesla
vehicle owners can pursue a proposed class action accusing
billionaire Elon Musk's electric car company of monopolizing
markets for repairs and parts, breathing new life into a lawsuit
she dismissed last November.
U.S. District Judge Trina Thompson in San Francisco ruled on
Monday that owners could try to prove that Tesla coerced them
into paying high prices and suffering long waits to have their
vehicles fixed, under fear of losing warranty coverage.
Owners said Tesla's alleged coercion violated the federal
Sherman antitrust law and California antitrust law.
Thompson found evidence of a repairs monopoly in Tesla's
alleged refusal to open enough authorized service centers, and
its designing vehicles to require diagnostic and software
updates that only the company could provide.
Evidence of a parts monopoly included restricting original
equipment manufacturers from selling "to anyone other than
Tesla," and Tesla's selling parts to consumers only on a limited
basis, the judge said.
Thompson also found evidence Tesla's alleged illegal "tying"
of various markets "coerces customers into undesired purchases."
Tesla and its lawyers did not immediately respond to
requests for comment on Tuesday.
They contended that the complaint was based on an "illogical
theory" that Tesla intentionally degraded repairs and parts,
jeopardizing its far more profitable business of selling and
leasing vehicles.
Matt Ruan, a lawyer for the plaintiff owners, said they were
pleased with the court's well-reasoned and thoughtful decision,
and looked forward to the next phase of the case.
The complaint combined five lawsuits by vehicle owners who
have paid for Tesla repairs and parts since March 2019.
They said the Austin, Texas-based company differed from
rivals by insisting it handle servicing and parts, rather than
let owners use independent shops and other companies' parts.
Tesla sells its vehicles directly to consumers, instead of
through franchisees.
It reported $8.3 billion of services and other automotive
revenue in 2023, accounting for 9% of its $96.8 billion total
revenue. Vehicle sales totaled $78.5 billion.
The case is Lambrix v Tesla Inc ( TSLA ), U.S. District Court,
Northern District of California, No. 23-01145.