Tesla is dealing with a new class-action lawsuit in California amid its global expansion, which includes the launch of the Model Y L in China and the rollout of FSD (supervised) in Japan. As the lawsuit alleges, plaintiffs believe that Tesla has misrepresented aspects of its driver-assist (FSD) software, especially, as Tesla has been accused of marketing strategies in relation to the FSD software.
Tesla’s marketing video from 2016 generated a lot of buzz, but it wasn’t anywhere close to as controversial as Nikola’s roll-it-down-the-hill stunt with its electric truck. Yet, the ad did raise enough doubt to bring into question Tesla’s credibility. The new class-action lawsuit, however, argues that Tesla oversold the FSD subscription by touting the software’s autonomous driving capabilities but failing to deliver on promises made in marketing and advertisements with real-world performance.
Tesla’s Latest FSD-Related Class-Action Lawsuit
That led to a class-action suit being filed against Tesla, which has now been certified by a federal judge in California, and the suit is based on Tesla overstating the autonomous-driving ability of its vehicles. For years, Tesla and CEO Elon Musk have claimed all cars manufactured since 2016 were built with the necessary hardware to achieve Level 5 autonomy.
In relation to these statements, Tesla has for it’s part recently acknowledged that cars equipped with Hardware 3 (HW3) hardware configurations couldn’t entirely run the newest iteration of FSD software recently. Tesla intends to provide an upgrade from HW3 to HW4 to all HW3 customers who purchased the FSD software.
Tesla said in litigation that it does not mislead customers because its FSD software would need to “undergo validation and regulatory approval.” Nevertheless, Judge Rita F. Lin concluded there was enough evidence that members of the class relied upon Tesla’s Hardware Statements issued between October 2016 and August 2024 to permit the lawsuit to move forward.
Ongoing FSD Legal Challenges
Tesla has previously faced litigation related to FSD. You can divide current and past cases into two main categories:
- Deceptive advertising – In addition to the class-action lawsuit, the California DMV is taking legal action against Tesla for allegedly deceptive advertising around its Autopilot and FSD systems.
- Product Liability Ongoing Cases – Suits related to accidents that may have involved Tesla’s FSD software.
Positive Developments for Tesla
Tesla is making strides worldwide regardless of few legal issues. Tesla could eventually make as much as $250 billion in revenue from robotaxis, William Blair analysts have said. Meanwhile, in order to capture the world’s largest EV market, Tesla introduced the Model Y L in China. After releasing FSD (supervised) in China and a number of EU countries, Tesla is now preparing to deploy its FSD software stack to Japan, a key move for its self-driving ambitions.
FAQ
The suit alleges that Tesla did not come clean about what was capable with its Full Self-Driving software to customers.
The lawsuit concerns most vehicles built since 2016, and particularly those with Hardware 3 (aka FSD Computer).
Will Tesla be upgrading HW3 cars with FSD to HW4? Yes.
There are, however, misleading marketing lawsuits and product liability cases against Tesla alleging issues with its FSD software.
The lawsuit may call for a legal clarifications but works as Tesla grows overseas, with the Model Y L launching in China and FSD rolling in Japan.
