An arbitrator has ordered Tesla Inc. (Nasdaq: TSLA) to refund $10,600 to a Washington state attorney for the company’s Full Self-Driving package after determining the electric vehicle maker failed to deliver promised autonomous capabilities and improperly imposed undisclosed requirements.
Marc Dobin, who has practiced law for nearly 40 years and handles arbitration cases, purchased a 2021 Model Y in June 2021 with the $10,000 self-driving upgrade, hoping it would help his wife maintain independence as her mobility declined.
When Tesla delivered the vehicle in September 2021, the Full Self-Driving feature was not active. The company later introduced a “Safety Score” system requiring owners to prove they were safe drivers before accessing even a limited beta version — a requirement that was not disclosed in any purchase documentation.
“The evidence is persuasive that the feature was not functional, operational, or otherwise available,” the arbitrator ruled in the June 30, 2025 decision, ordering Tesla to pay $10,600 plus $7,975 in arbitration fees.
During the hearing, Tesla presented a single witness — a field technical specialist who admitted he had not reviewed Dobin’s driving logs, checked the vehicle’s equipment, or examined the sales contract. Two Tesla lawyers participated in the video conference to defend the case.
Tesla satisfied the award, and Dobin has received payment, according to his law firm’s website.
“It may be likely that this case could serve as a roadmap for people who had a similar situation, that they paid for full self driving, we’re subjected to the safety score, then got rid of the car before they were cleared by the safety score, or later, when Tesla remove the safety score requirements,” Dobin said in a comment to the Electek article.
CEO Elon Musk acknowledged in January 2025 that vehicles with older Hardware 3 computers cannot support full self-driving capabilities and will require costly upgrades.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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