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Details behind Model X owner’s $5M+ class action lawsuit against Tesla

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Following our report that a Model X owner has filed a class action law suit against Tesla, claiming a widespread defect in the vehicle’s onboard software causes sudden unattended acceleration (SUA), new details behind the suit have been obtained by Teslarati that shows a legal team aggressively targeting the core component to the Silicon Valley-based electric car maker’s fleet of vehicles.

The class action filed in federal district court claims Ji Chang Son – Korean star residing in Orange County, Calif. – crashed through his garage and into the living room of his home after his Tesla Model X accelerated suddenly and without warning on September 10, 2016, approximately one month after Mr. Son took delivery of the electric SUV. The suit claims that “Tesla has failed to properly disclose, explain, fix, or program safeguards to correct the underlying problem of unintended acceleration”, adding that “over sixteen thousand Model X owners with vehicles that could potentially accelerate out of control.

Son’s attorneys gave the court a full account of the development of the Model X, focusing on the company’s claim that the Model X is “the safest, fastest and most capable sport utility vehicle in history.” On the contrary, according to Son’s attorneys. They allege the Model X has a safety defect that permits the car to accelerate at full speed directly into solid objects, such as the exterior wall of Son’s home. In particular, they point out that 8 written complaints have already been filed with the National Highway Transportation Safety Administration from other Model X owners who report similar occurrences while driving their cars.

The lawsuit reads,

“Irrespective of whether the SUA events in the Model X are caused by mechanical issues with the accelerator pedal, an unknown failure in the electronic motor control system, a failure in other aspects of the electrical, mechanical, or computer systems, or some instances of pedal misapplication, the Model X is defective and unsafe. Tesla’s lack of response to this phenomenon is even more confounding when the vehicle is already equipped with the hardware necessary for the vehicle’s computer to be able to intercede to prevent unintended acceleration into fixed objects such as walls, fences, and buildings.

Despite repeated instances of Model X drivers reporting uncommanded full power acceleration while parking, Tesla has failed to develop and implement computer algorithms that would eliminate the danger of full power acceleration into fixed objects.This failure to provide a programming fix is especially confounding for a vehicle that knows when it is located at the driver’s home and is being parked in the garage, yet carries out an instruction, regardless of whether through an error by the vehicle control systems or by driver pedal misapplication, to accelerate at full power into the garage wall.

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Further, not only has Tesla failed to fix the problems, it has chosen instead to follow in the footsteps of other automobile manufacturers and simply blame the driver.”

One problem, according to Son’s attorneys, is the software that controls the Automatic Emergency Braking system. Tesla has programmed that feature to disengage in order to allow drivers to make emergency maneuvers,  “in situations where you are taking action to avoid a potential collision. For example:

  • You turn the steering wheel sharply.
  • You press the accelerator pedal.
  • You press and release the brake pedal.
  • A vehicle, motorcycle, bicycle, or pedestrian, is no longer detected ahead.”

In other words, say the attorneys, a Model X will drive straight into a solid wall if that is what the system thinks the driver wants it to do. “Apparently, this includes situations where the computer believes, rightly or wrongly, that the driver is commanding full power acceleration directly into fixed objects immediately in front of the vehicle.”

Class action lawsuits are complex and highly specialized legal actions. Federal law requires that the damages alleged for the entire class exceed $5 million. The plaintiff’s attorney have done so by claiming that Tesla is aware of at least two other instances in which drivers allege sudden unintended acceleration occurred while driving their Model X at low speeds. They then extrapolate those numbers to suggest that the rate of SUA incidents attributable to the Model X is 64 per 100,000 vehicles — substantially higher than for any other vehicle in history.

Page 12 of JI CHANG SON vs. TESLA MOTORS class action complaint

They point out that the incidence rate of SUA incidents for Toyota vehicles — which grabbed national headlines in 2010 — was far lower. They then go on to remind the court that Toyota paid several hundred million dollars to SUA victims as well as a $1.2 billion federal fine. Notice that the chart included in the pleadings shows an exaggerated and disproportionate projected SUA incidence rate for the Model X highlighted in bright red.

Tesla says its data retrieved from the vehicle’s blackbox shows the accelerator in Son’s Model X was fully depressed when the accident occurred. The question for the court will be whether the driver pressed the wrong pedal or whether the vehicle accelerated on its own. It is unclear whether a software failure would register the pedal as fully depressed even if it was not physically operated by the driver.

Plaintiffs always have the burden of proving their allegations. Attorneys for injured parties often rely on a legal doctrine known as res ipsa loquitur, which is Latin for “the thing speaks for itself.” Loosely translated, it means “we don’t know what is wrong with your product that you designed and built, but you know or should know.” Res ipsa loquitur shifts the burden of proof onto the defendant, which makes it much easier for a plaintiff to prevail in court.

One advantage the plaintiff gains from filing suit is the ability to discover what information Tesla has that is not yet public. Does Tesla know something it isn’t telling its customers? We may find out as this litigation goes forward.

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We’ve provided a copy of the entire class action filing below.

[pdf-embedder url=”http://www.teslarati.com/wp-content/uploads/2017/01/Son-vs-Telsa-class-action-8-16-cv-2282.pdf”]
 

"I write about technology and the coming zero emissions revolution."

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NHTSA just escalated its Tesla Cybercab investigation in a big way

NHTSA escalated its Cybercab audit into a sworn Special Order with a September 30 deadline.

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Federal regulators have moved from asking Tesla questions about its Cybercab to demanding sworn answers. The National Highway Traffic Safety Administration issued a Special Order that requires a Tesla officer to sign an affidavit attesting to the completeness of the company’s responses, with a deadline of September 30.

The order builds on Audit Query AQ26002, which NHTSA opened on September 3, the same day Tesla began commercial Cybercab service in Austin. Teslarati covered that initial inquiry when it surfaced, noting the agency wanted to understand how Tesla certified a vehicle with no permanently attached steering wheel, pedals, or mirrors as compliant with Federal Motor Vehicle Safety Standards. A Special Order is a different tool and converts a fact finding review into a legally enforceable demand, the same mechanism NHTSA used against Tesla in 2023 during its Autopilot investigation.

Several of the 21 requests target a specific gap in Cybercab’s design. One asks whether Tesla used temporarily attached human controls at any point to help certify the vehicle, and if so, which standards depended on that equipment being present. Another quotes an existing rule directly: “The service brakes shall be activated by means of a foot control.” Cybercab has no foot pedal. NHTSA wants a detailed explanation of how the vehicle satisfies that requirement, and how it complies without the kind of exemption granted to Zoox in July under Part 555, the regulatory pathway built for steering wheel free vehicles.

The order does not claim Cybercab is unsafe or that Tesla broke a rule. It requires Tesla to explain, under oath, the reasoning behind decisions the company already made when it self-certified the vehicle. That distinction matters, but so does the exposure. Motor1’s reporting, summarized here, put potential civil penalty exposure as high as $139 million if NHTSA later finds the certification was flawed, on top of whatever criminal risk comes with a false sworn statement.

Tesla has not said publicly how it plans to respond. Cybercab is still carrying passengers in Austin through the Robotaxi app while the September 30 deadline approaches, and the company has continued expanding the vehicle’s footprint even as the regulatory question remains open. The Special Order does not pause any of that and just sets a date by which Tesla has to put its certification logic on the record, with a company officer’s name attached to it.

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Tesla uber bull Ron Baron says ‘the time to buy the stock is now’

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Credit: Tesla

In a new interview on Wednesday, Tesla uber bull Ron Baron said that anyone looking to buy the company’s stock should do so as soon as they can.

Baron, founder and CEO of Baron Capital and one of Tesla’s most persistent institutional bulls, used a CNBC Squawk Box appearance on Wednesday to deliver a familiar message with fresh urgency: In his opinion, Tesla stock is a buy:

“The time to buy the stock is now. FSD is catching on, and it’s going to be bigger and bigger. 55% of new buyers are buying it (Teslas) with FSD. It’s going to be everywhere. It’s safer.”

The Baron Capital frontman’s case is built around Full Self-Driving. Tesla reported 1.48 million active FSD subscriptions in the second quarter, up 56 percent year over year, and company officials have said roughly 55 percent of new North American deliveries left with a subscription enabled.

Baron framed that attach rate as proof the product is moving from enthusiast extra to default expectation, and as a reason software, not just vehicle volume, should drive the next phase of value.

His conviction on Tesla shares is not theoretical, as Baron Capital made its first Tesla investment in 2014, after years of meetings that began around the 2010 IPO roadshow. The firm later built a large SpaceX position starting in 2017.

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Baron said those Musk-led bets have generated about $30 billion of the $71 billion in profits Baron Capital has produced for clients. He put the firm’s current exposure at roughly $25 billion in SpaceX and $5 billion in Tesla. Personally, he described SpaceX as his largest holding, at about $5 billion, with about $1.5 billion in Tesla and additional Tesla exposure through the firm’s funds.

That concentration is also a statement of loyalty. Asked about talk of a SpaceX-Tesla combination, Baron said he had already walked Elon Musk through arguments for and against a deal, then declined to repeat them on air. His public position was simpler: “Whatever you decide is better is what I’m going to support,” he said to Musk.

Baron also said that he picked up the farewell edition of the Model S after Tesla decided to sunset the vehicle earlier this year, calling it his favorite car he’s ever driven.

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SpaceX’s next Starship launch is about to attempt its biggest leap yet

SpaceX targets September 22 for Starship Flight 14, its first attempt to reach real orbit.

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SpaceX has set September 22 as the target date for Starship’s 14th test flight, and this one carries a different goal than any of the 13 that came before it. Every previous Starship mission has intentionally flown a suborbital arc, reentering the atmosphere within the same hour it launched. Flight 14 is designed to send the craft into a genuine orbit around Earth for the first time.

The launch window opens at 7:15 a.m. Central time at Starbase in South Texas and runs for 75 minutes, pending regulatory approval, according to SpaceX’s mission description published Tuesday. If the flight goes as planned, Starship will circle the planet roughly six times at an altitude near 275 kilometers over about ten hours before a deorbit burn sends it toward a splashdown in the Pacific Ocean west of Chile, a departure from the Indian Ocean recoveries used on the last several flights.

The mission also marks the first attempt to put a working batch of Starlink V3 satellites into actual service. Flight 13 carried 20 of the new satellites in July, but because that mission never left a suborbital trajectory, the payload reentered along with the ship instead of separating into orbit.

SpaceX tells the FCC that Starship Flight 14 is going to orbit

Each V3 satellite is rated for roughly one terabit per second of downlink capacity, so a successful deployment on Flight 14 would be SpaceX’s largest single jump in network bandwidth since Starlink began flying on Falcon 9.

Flight 13 still did the heavier lifting on the technical side. That July mission flew a deliberately more stressful reentry profile to test Starship’s heat shield, and the ship survived its softest splashdown yet, intact enough for drone inspections shortly after landing. Elon Musk said the flight delivered “all the heat shield data we needed and then some,” a result Teslarati covered in detail when he later said SpaceX had solved the vehicle’s biggest reusability challenge. Flight 14 is where SpaceX starts spending that confidence on an actual orbital insertion rather than another controlled fall back to Earth.

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One thing Flight 14 will not attempt is a tower catch of the ship. Musk floated the idea right after Flight 13, but walked the timeline back in August, saying a catch attempt was more likely “in a few months.” The Super Heavy booster will still aim for its own recovery, targeting an offshore landing point in the Gulf of America, the same approach used on recent flights.

September 22 is SpaceX’s own target, not a locked date. Starship’s schedule has slipped before over hardware readiness and FAA sign off, and the company has said as much in its own mission notes. But the plan itself represents the clearest marker yet that Starship is moving from a suborbital test program into something meant to carry paying payloads and, eventually, people.

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