Tesla Faces Class-Action Lawsuit Over Autopilot Claims

Tesla and its CEO, Elon Musk, are facing a significant legal challenge as a class-action lawsuit concerning the company’s Autopilot and Full-Self Driving (FSD) technologies has been given the green light by a California federal judge. The lawsuit, representing all Tesla drivers who used these features, claims that customers were misled by promises of fully autonomous driving that have not been fulfilled. Thomas LoSavio, the primary plaintiff, bought his Tesla in 2017, paying $8,000 extra for FSD based on assurances from Musk and the company that autonomous driving was imminent.

Judge Rita Lin of the Northern District of California ruled that LoSavio had valid grounds to claim he was misled, noting that Tesla allegedly made increasingly specific false statements about the progress of its autonomous technology. This lawsuit is not Tesla’s first regarding its Autopilot and FSD capabilities. The company is also under investigation by the Justice Department to determine if Musk’s statements constitute wire and securities fraud.

The lawsuit, which began in 2022, was initially filed by LoSavio and four co-complainants. However, another judge ruled that Tesla’s arbitration agreements, which many customers could only remedy through the company’s in-house system, applied to the other complainants. LoSavio, having opted out of the arbitration agreement, was allowed to proceed with the class-action suit. Judge Lin’s ruling does not determine the lawsuit’s outcome but signifies that the claims are substantial enough to be heard in court.