Background of the Case
Tesla (TSLA.O) is now facing a certified class action lawsuit brought by California drivers who allege they were misled about the company’s self-driving technology. U.S. District Judge Rita Lin ruled that there is a common question for trial: whether Tesla promoted a level of autonomy its vehicles were not equipped to achieve.
The lawsuit focuses on claims that Tesla’s vehicles could operate with full self-driving (FSD) hardware, despite the company’s inability to demonstrate a truly autonomous long-distance drive.
Judge’s Decision
In her ruling on Monday, Judge Lin pointed out that Tesla repeatedly stated its cars were equipped with the necessary sensors and hardware for full autonomy. These claims appeared in the Autopilot section of Tesla’s website between October 2016 and August 2024, as well as in blog posts, newsletters, earnings calls, and a 2016 press conference led by CEO Elon Musk.
Lin wrote that while such marketing channels might not normally establish class-wide exposure, Tesla’s unique direct-to-consumer strategy made it reasonable to conclude that interested buyers would have seen these statements.
Scope of the Class Action
The certified classes include:
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Drivers who purchased the Full Self-Driving package between May 19, 2017, and July 31, 2024, and opted out of Tesla’s arbitration agreement.
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Drivers who bought the package between October 20, 2016, and May 19, 2017.
However, Judge Lin declined to certify a class of buyers who purchased Enhanced Autopilot, noting that the product did not depend on full self-driving functionality. As a result, the alleged false claims were not material to those purchase decisions.
Tesla’s Response
Tesla’s legal team argued that it was unreasonable to assume every class member had seen the disputed statements, and that there was no uniform proof they influenced purchasing decisions. The company also pointed out that it does not rely on traditional advertising or dealerships, further complicating exposure claims.
As of Tuesday, Tesla has not provided additional comment on the ruling.
Implications for Drivers
Class actions often enable plaintiffs to seek larger recoveries at lower cost than pursuing individual lawsuits. For Tesla drivers, the outcome could determine whether they are entitled to financial compensation for purchasing an FSD system that allegedly failed to meet advertised capabilities.
This case also highlights ongoing concerns about consumer trust in advanced driver-assistance systems, particularly when marketed as approaching full autonomy.
Wider Industry Context
Tesla’s FSD technology is central not only to its vehicle sales but also to its ambitions for a robotaxi network. The U.S. government has already investigated the safety of Tesla’s driver-assistance software, raising questions about whether the technology can deliver on its promises without creating safety risks.
The lawsuit—In re Tesla Advanced Driver Assistance Systems Litigation, U.S. District Court, Northern District of California, No. 22-05240—could shape how regulators, courts, and the public evaluate autonomous driving claims across the industry.
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