Tesla to Face Class-Action Lawsuit Over Alleged Misrepresentation of Self-Driving Capabilities

A US judge on Wednesday allowed a proposed class-action lawsuit against Tesla (Nasdaq: TSLA) and its CEO, Elon Musk, to proceed. The lawsuit, filed by California resident Thomas LoSavio, alleges that the electric car maker misled consumers about the self-driving capabilities of its vehicles since 2016.

LoSavio, who paid an extra $8,000 for the Full Self-Driving (FSD) feature when he bought a Tesla Model S in 2017, claims that the company’s statements led him to believe his car would have self-driving technology within a short time period. However, as of 2022, Tesla had not delivered on its promises of fully autonomous vehicles.

Related: NHTSA Investigation Report on Autopilot System “Devastating For Tesla”

Selkirk Copper Mines — sponsored Sponsored · Selkirk Copper Mines

US District Judge Rita Lin in San Francisco ruled that owners could pursue negligence and fraud-based claims, particularly if they relied on Tesla’s representations about the vehicles’ hardware and ability to drive coast-to-coast without human intervention. While the judge dismissed some claims, she said that if Tesla intended to convey that its hardware was sufficient for high or full automation, the complaint “plainly alleges sufficient falsity.”

Related: Tesla 2016 Full Self-Driving Video Was Faked, Says Head of Autopilot Engineering

The lawsuit seeks unspecified damages for individuals who purchased or leased Tesla vehicles with Autopilot, Enhanced Autopilot, and FSD features since 2016. 

Tesla is also facing federal probes into whether its self-driving technology may have contributed to fatal crashes, as well as investigations into potential securities or wire fraud related to misleading investors about the vehicles’ autonomous capabilities.

Related: Tesla’s Largest Retail Shareholder Says Elon Musk Is a ‘Magician’ Who’s Only in it ‘for Money and Power’

Although Tesla has said that Autopilot and FSD enable vehicles to perform various functions, it acknowledges that neither technology renders the cars fully autonomous or excuses drivers from paying attention to the road. 

The case, titled “In re Tesla Advanced Driver Assistance Systems Litigation,” will now proceed to pretrial fact-finding, with a decision on class-action status to follow.


Information for this story was found via Bloomberg, Reuters, and 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.

Video Articles

This Copper Mine Costs 1/6 to Restart | SSR Mining X Roxmore

Why Cambria Hit Pause on Its Massive Copper-Gold Spinout

Can Gold Rescue Washington From Its Debt Trap? | Andy Schectman – Miles Franklin

Recommended

Blue Jay Gold Signs Ocean Partners Deal to Ship Steller Stockpiles Through 2027

Krait Critical Minerals Signs Option for Historical Nevada King Antimony Mine

Related News

X Claims It Owns All of Its Users’ Accounts Amid Infowars’ Pending Sale to The Onion

Elon Musk’s X is claiming it owns all its users’ accounts — including those belonging...

Wednesday, November 27, 2024, 02:19:00 PM

Why Did Tesla Convert 75% Of Its Bitcoin Holdings?

Faster than its accumulation of the digital asset, Tesla (Nasdaq: TSLA) just liquidated around three-quarters...

Thursday, July 21, 2022, 11:22:00 AM

Elon Musk Plays Twitter God, Plans To Reactivate Banned Accounts

Elon Musk intends to reinstate nearly all previously suspended Twitter accounts. In a poll where...

Friday, November 25, 2022, 04:03:00 PM

Kevin O’Leary Has Given Up on X, Says It’s ‘A Cesspool’

Kevin O’Leary, the Canadian entrepreneur, self-proclaimed investment guru, FTX influencer, and famed Shark Tank judge,...

Wednesday, December 13, 2023, 12:52:00 PM

Tesla Recalls Over 475K Cars Over Trunk Latch, Camera Defects

Shares of Tesla (NASDAQ: TSLA) were sent falling on Thursday morning, after the EV maker...

Friday, December 31, 2021, 03:43:00 PM