Tesla Faces Class Action Lawsuit Over Autonomous Driving Claims

A district judge has cleared the way for a class action lawsuit against Elon Musk’s Tesla, filed by a California driver. The judge, Rita Lynn, has certified the suit concerning the company’s fully automated driving (FSD) technology. This decision permits two groups of California drivers—those who bought the FSD package—to take Tesla to court over claims that the company misled them regarding the vehicles’ autonomous capabilities. Tesla had been opposing the classification of the case as a class action.

The plaintiffs contend that Tesla and Musk made misleading assertions about the vehicles’ ability to reach advanced levels of autonomy. They point to deficiencies in sensors and the company’s failure to showcase long-range autonomous driving with its vehicles. Judge Lynn highlighted that a large number of consumers might have been influenced by Tesla’s representations about cars equipped for fully automated driving.

Tesla’s unconventional marketing approach, which lacks traditional extensive advertising and independent dealers, has notably impacted the judge’s ruling. Lynn stated that it is reasonable for potential customers interested in FSD technology to visit Tesla’s website for information and trust that it supports their purchasing decisions.

Furthermore, this setback for Musk is compounded by a lawsuit linked to a fatal accident involving a woman and serious injuries to her boyfriend. An expert in safety, Missy Cummings, expressed strong criticism regarding Tesla’s claims of autonomy during her testimony.

Cummings indicated that the owner manuals for Tesla vehicles, which contain crucial warnings about the Autopilot system, are not easy for drivers to access. She noted that the company had worked with a driver who disregarded warnings generated by the system prior to a crash. Additionally, Cummings pointed out that Tesla has not adopted Geo-Fencing, a technology that other car manufacturers already use.

When plaintiff’s attorney Brett Schreiber questioned her on Tesla’s 2019 choice not to implement geofencing, Cummings suggested it might be a strategy to boost sales. Having previously served as a senior adviser at the National Highway Traffic Safety Administration (NHTSA), she is expected to face further inquiries from Tesla’s legal team when she returns as a witness.

The class action includes drivers who acquired the FSD package between May 19, 2017, and July 31, 2024, and opted out of Tesla’s arbitration agreement, as well as those who purchased it between October 20, 2016, and May 19, 2017. The allegations regarding Tesla’s purportedly false statements are said not to have significantly influenced purchasing decisions.

Tesla’s lawyers have yet to comment on the ruling. Previously, the company argued that it’s unreasonable to assume that all members of the class saw the contested statements and maintained that there’s no solid evidence regarding the statements’ significance.

This class action arises amidst ongoing federal investigations into the safety of Tesla’s fully automated driving software. The result of this case could have serious consequences for Tesla’s image and the future of autonomous driving technology.