Tesla has to face fraud suit for falsely claiming its cars could fully drive themselves

‘A federal judge ruled yesterday that Tesla must face a lawsuit alleging that it committed fraud by misrepresenting the self-driving capabilities of its vehicles.’

The lawsuit is based on California resident Thomas LoSavio’s complaint against a 2016 Tesla statement claiming 'all its cars going forward would have the “hardware needed for full self-driving capability,” and a November 2016 email newsletter stating that “all Tesla vehicles produced in our factory now have full self-driving hardware.”

Here’s what the judgement said:
’ > Those statements were allegedly false because the cars lacked the combination of sensors, including lidar, needed to achieve SAE Level 4 (“High Automation”) and Level 5 (“Full Automation”), i.e., full autonomy. According to the SAC [Second Amended Complaint], Tesla’s cars have thus stalled at SAE Level 2 (“Partial Driving Automation”), which requires “the human driver’s constant supervision, responsibility, and control.”

If Tesla meant to convey that its hardware was sufficient to reach high or full automation, the SAC plainly alleges sufficient falsity. Even if Tesla meant to convey that its hardware could reach Level 2 only, the SAC still sufficiently alleges that those representations reasonably misled LoSavio.’

The complaint also “sufficiently alleges that Musk falsely represented the vehicle’s future ability to self-drive cross-country and that LoSavio relied upon these representations pre-purchase,” Lin concluded. Musk claimed at an October 2016 news conference that a Tesla car would be able to drive from Los Angeles to New York City “by the end of next year without the need for a single touch.”


Suing deep pockets is an American hobby.

The Captain