Tesla Faces Legal Trouble Over Elon Musk’s Self-Driving Claims

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Tesla’s CEO Elon Musk is no stranger to making bold statements about the self-driving technology his company touts. However, many of these claims have raised eyebrows as they haven’t materialized as expected.

In fact, this has led to frustration among both fans and those within the company.

One notable figure who has voiced his skepticism is Apple co-founder Steve Wozniak, who once supported Tesla’s ambitions. But after trying out the self-driving features, he changed his tune.

During a chat with CNN in 2023, Wozniak said, “If you want to see AI gone wrong with unrealistic claims that could endanger you, just get a Tesla.”

This isn’t his first criticism of the brand. He has previously claimed that both Tesla and Musk have made promises that fell flat.

“A lot of truth seems to vanish when you look at Elon Musk and Tesla. They’ve ripped off my family and me of a significant amount of money based on what we believed would actually work,” he expressed before.

This week marked a turning point for Tesla, as a judge in California ruled that the company must confront a class action lawsuit over allegations that it misled customers regarding the Full Self Driving technology.

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Elon Musk, the face of Tesla, has made significant claims about the autonomous capabilities of their vehicles. BRITTA PEDERSEN/POOL/AFP via Getty

California Court Allows Class Action Against Tesla Over FSD Claims

On Tuesday, U.S. District Judge Rita Lin decided that Tesla’s class action case can proceed. The lawsuit alleges that Tesla lured customers in with false advertising about the capabilities of their Full Self Driving (FSD) technology.

The judge recognized the critical issue surrounding whether Tesla could truly meet the advertised level of operational autonomy and if it could demonstrate long-distance self-driving functionality. This sparked a class action from groups of drivers who purchased the FSD packages.

The judge noted the numerous customers who encountered Tesla’s claims on the company’s website during the period from October 2016 to August 2024, including mentions of existing hardware for full self-driving.

While typically advertising may not lead to widespread impact in traditional car companies, the judge pointed out that Tesla’s unique marketing approach changed the game. According to reports by Reuters, Judge Lin’s findings acknowledged that since Tesla doesn’t engage in mass-market advertising or rely on multiple dealerships, the assumption that potential FSD buyers examined the company’s website for product details is reasonable.

One class consists of customers who opted for the FSD package between May 19, 2017, and July 31, 2024, who declined Tesla’s arbitration arrangement. The other group purchased from October 20, 2016, to May 19, 2017.

The case is titled In re Tesla Advanced Driver Assistance Systems Litigation, filed in the U.S. District Court for Northern California, case number 22-05240.

Tesla’s Record with Autopilot Claims Raises Concerns

While Tesla asserts that its driving tech outperforms human drivers, reports show troubling incidents. According to law firm Simmons Hanly Conroy, there were at least 273 recorded accidents tied to Tesla’s Autopilot or self-drive features between July 2021 and July 2022.

Furthermore, Tesla has entered into various settlements related to its self-driving controversies, some of which remain confidential.

  • $10.5 million settlement – California 2023: A Tesla Model X using Autopilot crashed into a highway barrier, leading to the driver’s death. The family claimed that Autopilot failed to recognize the barrier and that Tesla misrepresented its abilities.
  • $8.2 million settlement – California 2022: A pedestrian was struck and killed by a Tesla Model 3 on Autopilot that neglected to warn the driver of possible danger.
  • $7.5 million settlement – California 2021: A Tesla Model S on Autopilot rear-ended a stationary vehicle at high speed, killing the passenger instantly, with investigators declaring no attempt to brake before impact.
  • $6.8 million settlement – California 2020: A Tesla Model X crashed into a parked fire truck while under Autopilot control, resulting in the death of a passenger due to blunt force trauma, though the driver survived.

Related: Tesla faces another lawsuit after $323 million Autopilot verdict

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