Tesla Inc. (TSLA) May Face Class-action Lawsuit For Inflated Self-driving Claims

Tesla Model 3 (TSLA)

Tesla Inc might get in legal trouble for misleading people about how capable its Autopilot software is. The firm has said in its ads that the autopilot allows for a hands-free drive, parking and lots more. But, as per law firm – Hagens Berman, this is not all true. The law firm is contemplating the idea of filing a class-action suit against the automaker, reported Electrek.

Tesla has not delivered what it promised

The law firm’s website notes that Tesla charged a hefty amount of premium worth $10,000 from its buyers for the self-driving feature. However, it didn’t pay them what they deserved truly, and were misled to believe the capabilities of Autopilot. The features of Autopilot 2 that the firm is advertising aren’t operational as yet, claims Hagens Berman.

“The AP2 was also supposed to include safety features such as automatic emergency braking, collision warnings, lane holding and active cruise control but these features remain unavailable, despite being available on AP1 cars,” the law firm claims.

In a similar case in China, a father, whose son died in a Model S crash while in Autopilot, was reported to have sued Tesla Inc . Though there is no clear information as to what happened in that case, the 10k filing says the suit had apparently been dropped or settled, naotes Seeking Alpha.

No clarity on Autopilot updates

It is true that drivers still don’t have access to a number of planned features for Tesla’s AP2 software. However, the company has said a big update is due to the consumers sometime this month.

It seems the issue this time is that Tesla Inc has failed to meet the deadline it promised for delivering the Autopilot 2 with all its features. Tesla has been saying that the unavailable features will be rolled out over time, but when will those features be actually activated is also a suspense.

Tesla Motors Inc. (TSLA) Store in Southern California

Meanwhile, Tesla’s website says that it has started rolling out its Enhanced Autopilot software, and “features will continue to be introduced as validation is completed, subject to regulatory approval,”

Elon Musk has already said that the time is not far when Tesla will reduce the risk of accidents by ten times due to human error with the help of Autopilot software. That will be a great day in the history as it will remove all fears regarding safety and make people go with the autonomous driving options.

However, for now, the EV firm may have to face plenty of questions regarding its Autopilot, and possibly even a class-action.

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Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.


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