Lawsuit: Elon Musk’s Tesla Committed Fraud by Misrepresenting Self-Driving Capabilities

A federal judge has ruled that Elon Musk’s Tesla must face a lawsuit alleging that the company committed fraud by misrepresenting the self-driving capabilities of its vehicles.that in a recent ruling, US District Judge Rita Lin in the Northern District of California determined that a lawsuit filed by California resident Thomas LoSavio against Tesla can move forward on allegations of fraud.

LoSavio, who purchased a 2017 Tesla Model S with “Enhanced Autopilot” and “Full Self-Driving Capability,” points to specific representations made by Tesla that he claims were misleading. These include statements that Tesla vehicles have the hardware needed for full self-driving capability and that a Tesla car would be able to drive itself cross-country in the coming year.

The remaining claims, which arise out of Tesla’s alleged fraud and related negligence, may go forward to the extent they are based on two alleged representations: representations that Tesla vehicles have the hardware needed for full self-driving capability and, representations that a Tesla car would be able to drive itself cross-country in the coming year.

Tesla had previously won a significant ruling in the case when a different judge upheld the carmaker’s arbitration agreement, requiring four plaintiffs to go to arbitration. However, LoSavio had opted out of the arbitration agreement and was allowed to file an amended complaint.

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