Tesla's attempt to dismiss a lawsuit alleging Musk and the electric company of misleading vehicle owners about having their cars equipped with self-driving capabilities was soon rejected by a US judge on Wednesday.
Nationwide Class-Action Lawsuit Against Elon Musk's Tesla
The proposed nationwide class action accused Tesla and Musk of falsely advertising Autopilot and other self-driving technology since 2016, claiming they were functional or just around the corner to make drivers pay more.
San Francisco US District Judge Rita Lin ruled that owners could pursue negligence and fraud-based claims if they relied on Tesla's statements about the vehicles' hardware and their ability to drive coast-to-coast across the US Without merits on the ruling, Judge Lin plainly alleges the complaint of sufficiently demonstrating falsity after Tesla conveyed to be reaching high or full automation.
The judge dismissed some other claims. Tesla, its lawyers, and vehicle owners did not immediately respond to requests for comment.
Tesla Vehicle Owner's Fraud-Based Complaint
The case was led by Thomas LoSavio, a retired California lawyer who said he paid an $8,000 premium in 2017 for Full Self-Driving capabilities on a Tesla Model S, believing it would make driving safer as his reflexes deteriorated with age. However, after six years, Tesla still could not come close, not even remotely, to make a fully self-driving car.
The lawsuit seeks unspecified damages for individuals who bought or leased Tesla vehicles with Autopilot, Enhanced Autopilot, and Full Self-Driving features since 2016.
Tesla's Self-Driving Technology's Credibility
Tesla has long been under federal investigators' radar for many years, involving hundreds of crashes and fatal accidents with Autopilot engaged, leading to a widespread recall by the automaker.
Tesla's Autopilot and Full Self-Driving systems help with steering, braking, and lane changes but are not completely autonomous. While Tesla admitted that neither technology makes vehicles fully autonomous or excuses drivers from paying attention to the road, the Justice Department scrutinizes other statements implying that Tesla cars can operate autonomously.
Reuters exclusively reported on the US criminal investigation into Tesla in October 2022 and is now the first to report the specific criminal liability that federal prosecutors are examining.
According to two sources, investigators are exploring whether Tesla committed wire fraud, which involves deception in interstate communications, by misleading consumers about its driver-assistance systems or whether Tesla committed securities fraud by deceiving investors.
The investigation, which does not imply wrongdoing, could lead to criminal charges, civil penalties, or no action. Prosecutors are still considering their next steps, with one source noting they are analyzing numerous documents provided by Tesla in response to subpoenas. The case is known as In re Tesla Advanced Driver Assistance Systems Litigation, filed in the US District Court for the Northern District of California under case number 22-05240.
