Tesla Faces Global Class Action Over Unfulfilled FSD Promises

Since 2017, Tesla has repeatedly claimed that its vehicles would achieve full self-driving (FSD) capability—requiring no human intervention—through software updates, marketing this feature as a key selling point. Approximately 4 million Tesla vehicles worldwide have been sold under the promise that they are equipped with "all the necessary hardware for full self-driving," with some customers paying thousands of dollars extra to purchase the FSD package. However, to date, the feature has not delivered true autonomous driving, and vehicles equipped with older hardware cannot run the latest FSD software. Class-action lawsuits against Tesla have now been filed in California, with vehicle owners in Australia and the Netherlands also initiating legal proceedings. The lawsuits center on allegations including misleading advertising about FSD capabilities, "phantom braking" issues, and overstated range estimates. If courts determine that Tesla failed to fulfill its promises, the company could face up to $14.5 billion in potential liability. In response to the controversy, Tesla introduced a monthly $99 FSD subscription service, though this option remains unavailable to owners whose older hardware is incompatible with the new software. Additionally, during an earnings call, Tesla CEO Elon Musk remarked that he was "glad not many people bought the FSD package," a comment widely interpreted as signaling the company’s unwillingness to provide free hardware upgrades to all affected owners—further fueling customer dissatisfaction.