Tesla has recently reduced the price of its Full Self-Driving Beta (FSD Beta) option to $12,000, as the autonomous driving software continues to face regulatory scrutiny. Despite a recent legal victory for Tesla in an Autopilot-related case that determined a fatal accident was the result of driver error, the company remains entangled in various lawsuits and federal investigations. Among these, California’s Department of Motor Vehicles (DMV) and Attorney General’s office have alleged that Tesla misled the public with descriptions of its driver-assist features.
In one such lawsuit, Tesla offered a Model 3 owner the opportunity to settle the claim out of court. Notably, the claimant declined to sign Tesla’s typical non-disclosure agreements, making the details of the settlement public.
The owner had purchased a Model 3 in the UK in June 2019 and paid an additional £5800 for the Full Self-Driving Beta option, which Tesla had indicated would enable features like “automatic driving on city streets” and the ability to “recognize and respond to traffic lights and stop signs” through a software update by the end of the year.
However, these promised autonomous city driving capabilities failed to materialize, and due to local regulations, owners outside of the United States could not access the Full Self-Driving functions. Consequently, the expensive option effectively served as a glorified driver-assist software akin to Autopilot.
In response, the Model 3 owner initiated a lawsuit seeking compensation for false advertising regarding Full Self-Driving. Tesla, unexpectedly, opted to offer a settlement in the weeks leading up to the trial. The claimant agreed to the settlement, which included a refund for the Full Self-Driving payment along with interest, on the condition that Tesla remove the confidentiality clause.
The refusal of non-disclosure agreements in this settlement case has drawn attention to the issue, shedding light on concerns related to Full Self-Driving Beta and the expectations set by Tesla’s advertising. Following the settlement, Tesla removed the Full Self-Driving Beta feature from the owner’s 2019 Model 3, potentially setting a precedent for similar claims in the future.
