News
Details behind Model X owner’s $5M+ class action lawsuit against Tesla
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.
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.
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”]
Tesla analyst Gary Black of The Future Fund claims that the company is making a big mistake getting rid of the Model S and Model X. Instead, he believes another vehicle within the company’s lineup should be discontinued: the Cybertruck.
Black divested The Future Fund from all Tesla holdings last year, but he still covers the stock as an analyst as it falls in the technology and autonomy sectors, which he covers.
In a new comment on Thursday, Black said the Cybertruck should be the vehicle Tesla gets rid of due to the negatives it has drawn to the company.
The Cybertruck is also selling in an underwhelming fashion considering the production capacity Tesla has set aside for it. It’s worth noting it is still the best-selling electric pickup on the market, and it has outlasted other EV truck projects as other manufacturers are receding their efforts.
Black said:
“IMHO it’s a mistake to keep Tesla Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully autonomous?”
IMHO it’s a mistake to keep $TSLA Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully…
— Gary Black (@garyblack00) January 29, 2026
On Wednesday, CEO Elon Musk confirmed that Tesla planned to transition Model S and Model X production lines at the Fremont Factory to handle manufacturing efforts of the Optimus Gen 3 robot.
Musk said that it was time to wind down the S and X programs “with an honorable discharge,” also noting that the two cars are not major contributors to Tesla’s mission any longer, as its automotive division is more focused on autonomy, which will be handled by Model 3, Model Y, and Cybercab.
Tesla begins Cybertruck deliveries in a new region for the first time
The news has drawn conflicting perspectives, with many Tesla fans upset about the decision, especially as it ends the production of the largest car in the company’s lineup. Tesla’s focus is on smaller ride-sharing vehicles, especially as the vast majority of rides consist of two or fewer passengers.
The S and X do not fit in these plans.
Nevertheless, the Cybertruck fits in Tesla’s future plans. Musk said the pickup will be needed for the transportation of local goods. Musk also said Cybertruck would be transitioned to an autonomous line.
In a groundbreaking new report from Reuters, SpaceX is reportedly discussing merger possibilities with xAI ahead of the space exploration company’s plans to IPO later this year, in what would be a blockbuster move.
The outlet said it would combine rockets and Starlink satellites, as well as the X social media platform and AI project Grok under one roof. The report cites “a person briefed on the matter and two recent company filings seen by Reuters.”
Musk, nor SpaceX or xAI, have commented on the report, so, as of now, it is unconfirmed.
With that being said, the proposed merger would bring shares of xAI in exchange for shares of SpaceX. Both companies were registered in Nevada to expedite the transaction, according to the report.
On January 21, both entities were registered in Nevada. The report continues:
“One of them, a limited liability company, lists SpaceX and Bret Johnsen, the company’s chief financial officer, as managing members, while the other lists Johnsen as the company’s only officer, the filings show.”
The source also stated that some xAI executives could be given the option to receive cash in lieu of SpaceX stock. No agreement has been reached, nothing has been signed, and the timing and structure, as well as other important details, have not been finalized.
SpaceX is valued at $800 billion and is the most valuable privately held company, while xAI is valued at $230 billion as of November. SpaceX could be going public later this year, as Musk has said as recently as December that the company would offer its stock publicly.
The plans could help move along plans for large-scale data centers in space, something Musk has discussed on several occasions over the past few months.
At the World Economic Forum last week, Musk said:
“It’s a no-brainer for building solar-powered AI data centers in space, because as I mentioned, it’s also very cold in space. The net effect is that the lowest cost place to put AI will be space and that will be true within two to three years, three at the latest.”
He also said on X that “the most important thing in the next 3-4 years is data centers in space.”
If the report is true and the two companies end up coming together, it would not be the first time Musk’s companies have ended up coming together. He used Tesla stock to purchase SolarCity back in 2016. Last year, X became part of xAI in a share swap.
Tesla has announced it has hit a major milestone with Full Self-Driving subscriptions, shortly after it said it would exclusively offer the suite without the option to purchase it outright.
Tesla announced on Wednesday during its Q4 Earnings Call for 2025 that it had officially eclipsed the one million subscription mark for its Full Self-Driving suite. This represented a 38 percent increase year-over-year.
This is up from the roughly 800,000 active subscriptions it reported last year. The company has seen significant increases in FSD adoption over the past few years, as in 2021, it reported just 400,000. In 2022, it was up to 500,000 and, one year later, it had eclipsed 600,000.
NEWS: For the first time, Tesla has revealed how many people are subscribed or have purchased FSD (Supervised).
Active FSD Subscriptions:
• 2025: 1.1 million
• 2024: 800K
• 2023: 600K
• 2022: 500K
• 2021: 400K pic.twitter.com/KVtnyANWcs— Sawyer Merritt (@SawyerMerritt) January 28, 2026
In mid-January, CEO Elon Musk announced that the company would transition away from giving the option to purchase the Full Self-Driving suite outright, opting for the subscription program exclusively.
Musk said on X:
“Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.”
The move intends to streamline the Full Self-Driving purchase option, and gives Tesla more control over its revenue, and closes off the ability to buy it outright for a bargain when Musk has said its value could be close to $100,000 when it reaches full autonomy.
It also caters to Musk’s newest compensation package. One tranche requires Tesla to achieve 10 million active FSD subscriptions, and now that it has reached one million, it is already seeing some growth.
The strategy that Tesla will use to achieve this lofty goal is still under wraps. The most ideal solution would be to offer a less expensive version of the suite, which is not likely considering the company is increasing its capabilities, and it is becoming more robust.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Currently, Tesla’s FSD subscription price is $99 per month, but Musk said this price will increase, which seems counterintuitive to its goal of increasing the take rate. With that being said, it will be interesting to see what Tesla does to navigate growth while offering a robust FSD suite.
Tesla analyst claims another vehicle, not Model S and X, should be discontinued
SpaceX reportedly discussing merger with xAI ahead of blockbuster IPO
