In an August 18, 2025 Order, the Northern District of California certified classes for both damages and injunctive relief against Tesla over its allegedly misleading statements about the full self-driving (“FSD”) capability of its vehicles. The case alleges that Tesla’s conduct violates California’s Unfair Competition Law (“UCL”), Consumer Legal Remedies Act (“CLRA”), and False Advertising Law (“FAL”), and further constitutes fraud, negligent misrepresentation, and negligence. Focusing on Tesla’s representation in October 2016 that all of its vehicles now had the hardware to be fully self-driving, the Court noted that Tesla had since updated its hardware multiple times, including in 2024 when CEO Musk admitted that a hardware upgrade may be necessary for all customers who had purchased the FSD package with prior hardware configurations. The certified damages classes include consumers who purchased Tesla’s FSD package but who are not bound by Tesla’s arbitration agreement. The injunctive relief class consists of consumers not subject to arbitration who have a stated intent to purchase or subscribe to FSD in the future but who cannot rely on Tesla’s future advertising or labelling.
