A federal judge has ruled that Elon Musk’s Tesla must sue for fraud by misrepresenting the self-driving capabilities of its vehicles.
ars technica report In a recent ruling, U.S. District Judge Rita Lin for the Northern District of California ruled that California resident Thomas Rosavio’s lawsuit against Tesla can proceed on fraud charges. The lawsuit, which seeks class action status, alleges that Tesla and its CEO Elon Musk have made false claims about the self-driving capabilities of Tesla cars since October 2016.
Tesla Inc. CEO Elon Musk speaks via video link at the Qatar Economic Forum in Doha, Qatar, Tuesday, June 21, 2022. The second annual Qatar Economic Forum will bring together global business leaders and heads of state to address the following issues: Uncovering the world’s most pressing challenges through the lens of the Middle East.Photographer: Christopher Pike/Bloomberg
Rosavio, who purchased a 2017 Tesla Model S with “enhanced Autopilot” and “full self-driving capabilities,” points to specific language from Tesla that he claims is misleading. These include statements that Tesla cars are equipped with the necessary hardware for full self-driving capabilities, and that Tesla cars will be able to drive cross-country autonomously next year.
Judge Lin dismissed some of Rosavio’s claims, but allowed the case to proceed based on the alleged misrepresentation. The judgment states:
The remaining claims arise from Tesla’s alleged misconduct and related negligence and may proceed so long as they are based on two alleged representations: (1) that the Tesla vehicle is completely (2)) Tesla cars will be able to drive cross-country autonomously next year. Although Rule 9(b)’s pleading requirements are less stringent in this case, where Tesla allegedly engaged in a systematic pattern of fraud over an extended period of time, Rosavio most likely relied on these representations before purchasing the car. The argument is made with sufficient detail. .
The complaint alleges that Tesla’s cars have not reached the promised level of autonomy, stalling at SAE Level 2 (“partial automation”), which requires continuous human monitoring and control. . Rosavio argues that Tesla’s cars lack the combination of sensors, including lidar, needed to achieve full self-driving.
Tesla previously won an important ruling in a case in which another judge upheld an arbitration agreement between Tesla and the automaker and required four plaintiffs to go to arbitration. However, LoSavio was allowed to opt out of the arbitration agreement and file an amended complaint.
Tesla argued that Mr. Rosavio should have known earlier that full self-driving would require additional hardware, but Judge Lin ruled that Mr. Rosavio “was not able to do so with the car’s existing hardware. “[Tesla]makes a plausible case that he reasonably believed Tesla’s claims that driving was possible.”
The judge dismissed warranty claims and some fraud claims related to future developments in self-driving technology. However, Rosavio has until June 5th to amend his complaint, and Tesla must respond by June 19th.
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Lucas Nolan is a reporter for Breitbart News, covering free speech and online censorship issues.
