financetom
Business
financetom
/
Business
/
Tesla must face vehicle owners' lawsuit over self-driving claims
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Tesla must face vehicle owners' lawsuit over self-driving claims
May 15, 2024 4:30 PM

(Reuters) - A U.S. judge on Wednesday rejected Tesla's bid to dismiss a lawsuit accusing Elon Musk's electric car company of misleading owners into believing that their vehicles could soon have self-driving capabilities.

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

U.S. District Judge Rita Lin in San Francisco said owners could pursue negligence and fraud-based claims, to the extent they relied on Tesla's representations regarding vehicles' hardware and ability to drive coast-to-coast across the U.S.

Without ruling on the merits, Lin said that "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 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 for many years faced federal probes 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 lets vehicles steer, accelerate and brake in their lanes, and Full Self-Driving lets vehicles obey traffic signals and change lanes.

But it had acknowledged that neither technology makes vehicles autonomous, or excuses drivers from paying attention to the roads.

The case is In re Tesla Advanced Driver Assistance Systems Litigation, U.S. District Court, Northern District of California, No. 22-05240.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Cryptocurrency exchange Kraken to buy NinjaTrader in $1.5 billion deal
Cryptocurrency exchange Kraken to buy NinjaTrader in $1.5 billion deal
Mar 20, 2025
(Reuters) -Cryptocurrency exchange Kraken said on Thursday it would acquire futures trading platform NinjaTrader in a $1.5 billion deal, broadening the scope of its asset offerings and expanding its user base. The deal is expected to close in the first half of 2025. Founded in 2003, NinjaTrader provides retail future trading platform to nearly 2 million traders on desktop and...
Microsoft to Open First Cloud Region in Malaysia in Q2
Microsoft to Open First Cloud Region in Malaysia in Q2
Mar 20, 2025
07:09 AM EDT, 03/20/2025 (MT Newswires) -- Microsoft ( MSFT ) said Thursday it will open its first cloud region in Malaysia in Q2. The cloud region, known as the Malaysia West cloud, will be located in the greater Kuala Lumpur area, the tech giant added. Once operational, the cloud region will provide Malaysian organizations with access to Microsoft's (...
Market Chatter: Air India Plans Multi-Billion Dollar Order for Dozens of Widebody Jets from Boeing, Airbus
Market Chatter: Air India Plans Multi-Billion Dollar Order for Dozens of Widebody Jets from Boeing, Airbus
Mar 20, 2025
07:07 AM EDT, 03/20/2025 (MT Newswires) -- Air India is in talks over a multi-billion dollar order of 30 to 40 widebody jets, split between the Airbus A350 and Boeing 777X models, with the deal potentially exceeding 50 aircraft, Reuters reported Thursday, citing industry sources. The details of the deal have not been finalized, the report said. Things should become...
Financial data firm FactSet beats profit estimate on analytical tools demand
Financial data firm FactSet beats profit estimate on analytical tools demand
Mar 20, 2025
March 20 (Reuters) - FactSet beat analysts' estimate for second-quarter profit on Thursday, as robust demand for its financial data and analytics services drove subscription growth at the company. Demand for market analytical tools has risen as investors try to navigate delayed prospects of interest rate cuts and rising uncertainty over the economic impact of the Trump administration's trade, immigration...
Copyright 2023-2026 - www.financetom.com All Rights Reserved