Judge allows lawsuit over Tesla's 'misleading' self-driving claims to proceed

A US judge on Wednesday rebuffed Tesla's attempt to dismiss a lawsuit alleging that Elon Musk's electric car company misled owners into believing their vehicles would soon possess self-driving capabilities.

The proposed nationwide class action accused Tesla and Musk of falsely advertising Autopilot and other self-driving technology as functional or "just around the corner" since 2016, inducing drivers to pay more for their cars.

US District Judge Rita Lin in San Francisco ruled that owners could pursue claims of negligence and fraud, to the extent they relied on Tesla's representations regarding the vehicles' hardware and ability to drive coast-to-coast across the United States.

While not ruling on the merits, Lin said, "if Tesla meant to convey that its hardware was sufficient to reach high or full automation, the complaint plainly alleges sufficient falsity."
The judge dismissed some other claims.

Tesla and its lawyers did not immediately respond to requests for comment. Lawyers for Tesla vehicle owners also did not immediately respond to similar requests.
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 if his reflexes deteriorated as he aged.

LoSavio said he was still waiting for the technology six years later, with Tesla remaining unable "even remotely" to produce a fully self-driving car.

The lawsuit seeks unspecified damages for people who since 2016 bought or leased Tesla vehicles with Autopilot, Enhanced Autopilot and Full Self-Driving features.

Tesla has faced federal probes for many years into whether its self-driving technology might have contributed to fatal crashes.

Federal prosecutors are separately examining whether Tesla committed securities fraud or wire fraud by misleading investors about its vehicles' self-driving capabilities, according to three people familiar with the matter.

Tesla has said Autopilot allows vehicles to steer, accelerate and brake in their lanes, and Full Self-Driving allows vehicles to obey traffic signals and change lanes, but has acknowledged that neither technology makes vehicles autonomous or excuses drivers from paying attention to the roads.



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