Tesla Faces Class Action Over Self-Driving Claims After Judge’s Ruling

[Desmond Milligan 0]

Tesla Faces Class Action Over Self-Driving Claims After Judge’s Ruling originally appeared on Autoblog.

Tesla drivers who bought the company’s Full Self-Driving (FSD) package between 2016 and 2024 have just been handed a powerful tool: the ability to band together in a class-action lawsuit over claims that Tesla oversold its autonomy tech. A federal judge in California ruled this week that the case can move forward, citing the company’s consistent messaging through its website, blog posts, earnings calls, and Elon Musk’s own pronouncements.

For Tesla, it’s not just another legal headache — it’s a direct challenge to the very narrative that has underpinned its growth.

A Marketing Dream Turns Into a Legal Nightmare

Judge Rita Lin found that Tesla’s direct-to-consumer model makes it difficult for the company to argue that drivers weren’t exposed to its self-driving promises. If Musk and Tesla’s official channels told the world “all Teslas have the hardware for full autonomy,” then courts believe a reasonable buyer could have relied on those statements when paying thousands extra for FSD.

The distinction mattered. Buyers of Tesla’s Enhanced Autopilot package were excluded from the class, since that system never promised full autonomy. But for FSD, the message was clear: a car that could eventually drive itself. Nearly a decade later, owners are still waiting — just as former Waymo CEO John Krafcik quipped recently, “I’m still waiting”, dismissing Tesla’s much-hyped robotaxi claims.

Tesla

Why It Matters Beyond Tesla

The ruling doesn’t decide whether Tesla misled customers — it simply means drivers can pursue that argument together. Yet even this step could reshape how automakers market advanced driver-assist features. Regulators have already scrutinised Autopilot after a string of fatal crashes and “phantom braking” complaints. A class action multiplies the financial and reputational risk.

It comes at a precarious time. Tesla is juggling a wave of lawsuits, shareholder unrest, and sliding sales in key markets. In the UK, the company has even halved lease costs on the Model 3 and Model Y after a 60% sales slump, a move that smacks of desperation rather than dominance.

The Investor and Consumer Angle

Tesla’s stock slipped after the ruling, underscoring investor unease that the brand’s most important selling point — future autonomy — could become its biggest liability. If courts decide Tesla knowingly oversold FSD, damages could run into the billions. That’s not just bad news for Musk’s bottom line, but for consumer trust in the EV sector more broadly.

Meanwhile, Tesla keeps trying to shift the narrative with fresh product news. The Model Y L, launched this week with a bigger body and unexpected luxury features, was clearly designed to shore up Tesla’s appeal with mainstream buyers. But even plush new seats won’t distract regulators or judges if FSD turns into a courtroom millstone.

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The Road Ahead

Tesla’s courtroom battles are colliding with its future promises. The class action will probe whether “Full Self-Driving” was aspirational branding or outright deception. If the courts side with drivers, it won’t just be Tesla that feels the heat. Every automaker marketing “semi-autonomous” features may need to rethink how far they stretch the truth.

For drivers, the lesson is simple: the gap between what’s promised and what’s delivered can be vast — and now, for the first time, a judge is saying Tesla owners deserve the chance to fight back together.

Tesla Faces Class Action Over Self-Driving Claims After Judge’s Ruling first appeared on Autoblog on Aug 20, 2025

This story was originally reported by Autoblog on Aug 20, 2025, where it first appeared.

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