Tesla (TSLA.O) must defend a certified class action lawsuit brought by California drivers who claim Chief Executive Elon Musk and the company overstated the self-driving capabilities of its electric vehicles for nearly eight years, a U.S. judge has ruled.
U.S. District Judge Rita Lin in San Francisco said on Monday that a central question — whether Tesla lacked the necessary sensors to deliver full autonomy and failed to demonstrate a long-distance self-driving trip — was enough to justify group litigation. The case consolidates lawsuits from drivers who purchased Tesla’s Full Self-Driving package between 2016 and 2024.
The judge found that thousands of consumers were likely exposed to Tesla’s assertions, including on its website, blog posts, newsletters, earnings calls, and public remarks by Musk. Lin noted that Tesla’s direct-to-consumer model and reliance on its website for product information distinguished its approach from traditional automakers.
“While these channels alone may not ordinarily be enough to establish class-wide exposure for a traditional car manufacturer, Tesla’s distinctive advertising strategy warrants a departure from the typical approach,” Lin wrote in her decision.
The certified classes cover buyers of the Full Self-Driving package from May 2017 to July 2024 who opted out of arbitration agreements, as well as those who purchased the system from October 2016 to May 2017. Lin declined to include buyers of Tesla’s Enhanced Autopilot package, ruling that its features were not tied to full self-driving claims.
Class actions could provide plaintiffs with broader recovery at lower cost than individual lawsuits. Federal authorities have separately examined whether Tesla’s self-driving software is safe, with the technology seen as central to Musk’s long-promised robotaxi plans.
The case is In re Tesla Advanced Driver Assistance Systems Litigation, U.S. District Court, Northern District of California, No. 22-05240.
Source: Reuters