Tesla hit with lawsuit accusing Elon Musk's company of misleading customers: 'The sharks are circling'

Tesla is facing a class action lawsuit in Australia filed by thousands of owners who claim the company misrepresented the capabilities of its Full Self-Driving (FSD) technology. The lawsuit, led by JGA Saddler, focuses on the discrepancy between promised functionality and real-world performance, including issues like “phantom braking” where the Automatic Emergency Braking system engages unexpectedly. The suit is open to owners of Model 3 and Model Y vehicles purchased between May 2021 and February 2025.

JGA Saddler argues that Tesla advertised FSD as enabling full autonomy, while it remains a Level 2 driver-assistance system requiring constant driver supervision. Director Rebecca Jancauskas highlighted the potential dangers of phantom braking, stating it could lead to serious injury or death. This lawsuit follows a warning from French authorities earlier this year regarding misleading marketing of FSD.

Experts suggest this legal action presents an opportunity for Tesla to rebuild trust with its customers. Investment officer David Haughan stated, “Tesla customers have not got what they paid for,” and urged the company to address the issues of unfulfilled promises regarding self-driving capabilities, battery range, and safety. The outcome of the lawsuit could impact consumer confidence in Tesla and potentially slow the adoption of electric vehicles.

(Source：The Cool Down)