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Tesla fires back at new class-action suit that alleges “inoperative standard safety features” on Autopilot 2.0 cars
Tesla has been transparent about its Enhanced Autopilot software which the company said would roll out incrementally over time, but that hasn’t stopped HBSS Law firm from filing a new class-action suit today, alleging that Tesla deceitfully sold “inoperative Standard Safety Features” on cars that “lack basic functions featured in cars at half the price”. In question is, what the suit describes as, “nonfunctional” Autopilot 2.0 software, an optional feature available on Model S and Model X vehicles equipped with self-driving hardware.
Tesla responded to the suit, slamming the credibility of the claims being made, stating:
“This lawsuit is a disingenuous attempt to secure attorney’s fees posing as a legitimate legal action, which is evidenced by the fact that the suit misrepresents many facts. Many of the features this suit claims are “unavailable” are in fact available, with more updates coming every month. We have always been transparent about the fact that Enhanced Autopilot software is a product that would roll out incrementally over time, and that features would continue to be introduced as validation is completed, subject to regulatory approval.
Furthermore, we have never claimed our vehicles already have functional “full self-driving capability”, as our website has stated in plain English for all potential customers that “it is not possible to know exactly when each element of the functionality described above will be available, as this is highly dependent on local regulatory approval.” The inaccurate and sensationalistic view of our technology put forth by this group is exactly the kind of misinformation that threatens to harm consumer safety.”
The new class-action suit alleges that the California electric car maker knowingly sold nearly 50,000 vehicles equipped with self-driving Autopilot 2.0 hardware and the promise that Enhanced Autopilot hardware “still has not met Tesla’s promises” and was missing standard safety features.
The suit specifically takes issue with the Enhanced Autopilot feature of Tesla vehicles noting that, “the “Enhanced Autopilot,” for which customers paid an extra $5,000, is ‘essentially unusable and demonstrably dangerous.’”
The Tesla purchase page for the Model S “Tesla’s Enhanced Autopilot software has begun rolling out and features will continue to be introduced as validation is completed, subject to regulatory approval.”
The suit takes issue with the “beta” nature of the Enhanced Autopilot software, alleging that Tesla knew that it could not do what Tesla claimed it would do. It states that “the automaker knew that its software was incapable of upholding its promises to purchasers.”
Steve Berman a managing partner of Hagens Berman which represents the plaintiffs, shared:
“Tesla has endangered the lives of tens of thousands of Tesla owners across the country, and induced them to pay many thousands of dollars for a product that Tesla has not effectively designed. Tesla sold these vehicles as the safest sedan on the road. What consumers received were cars without standard safety enhancements featured by cars costing less than half the price of a new Tesla, and a purported ‘Enhanced Autopilot’ that operates in an erratic and dangerous manner.”
The suit compares the safety features available in Tesla vehicles to those available on “cars costing less than half the price of a new Tesla.” Tesla’s over-the-air update of firmware 8.1 aimed to bring Enhanced Autopilot to near feature parity with Model S and Model X vehicles equipped with first generation Autopilot 1.0. Here’s an excerpt from our coverage of firmware version 8.1, when it was first introduced:
Vehicles equipped with Tesla’s Autopilot 2.0 feature and self-driving sensors, also commonly referred to as “hardware 2” (HW2), will see improvements to Autosteer, lifting a previous speed cap set at 55 mph (88 mkh) to 80 mph (129 kmh). The update also adds the Auto Lane Change feature and Tesla Summon, which until now was only available on first-generation Autopilot cars. Tesla’s Lane Departure Warning feature has also been added to Autopilot 2.0 which will vibrate the steering wheel if the vehicle veers from its intended driving lane when speeds reach above 36 mph (58 kmh).
Berman doesn’t see it that way, stating that “to this day, Tesla has not released truly functional software for its Standard Safety Features or Enhanced Autopilot.”
The suit lists out the specific issues it takes with the “missing” Standard Safety Features:
“Regarding its Standard Safety Features which include automatic emergency braking, front collision warning, side collision warning and auto high beams, Tesla told consumers these features would be available by December 2016 and ‘roll out through over-the-air software updates,’ but to date, only a dangerously defective Traffic Aware Cruise Control has actually come to fruition, according to the suit. The remaining features simply do not exist.”
In scope of the class-action lawsuit are “about 47,000 affected Model S and Model X vehicles.” The suit seeks the value of the standard safety features that do not exist in these cars plus $5,000 for the “nonfunctional Enhanced Autopilot feature” that many owners purchased as an option to their vehicle.
Elon Musk
Rumored SpaceX-xAI merger gets apparent confirmation from Elon Musk
The comment follows reports that the rocket maker is weighing a transaction that could further consolidate Musk’s space and AI ventures.
Elon Musk appeared to confirm reports that SpaceX is exploring a potential merger with artificial intelligence startup xAI by responding positively to a post about the reported transaction on X.
Musk’s comment follows reports that the rocket maker is weighing a transaction that could further consolidate his space and AI ventures.
SpaceX xAI merger
As per a recent Reuters report, SpaceX has held discussions about merging with xAI, with the proposed structure potentially involving an exchange of xAI shares for SpaceX stock. The value, structure, and timing of any deal have not been finalized, and no agreement has been signed.
Musk appeared to acknowledge the report in a brief reply on X, responding “Yeah” to a post that described SpaceX as a future “Dyson Swarm company.” The comment references a Dyson Swarm, a sci-fi megastructure concept that consists of a massive network of satellites or structures that orbit a celestial body to harness its energy.
Reuters noted that two entities were formed in Nevada on January 21 to facilitate a potential transaction for the possible SpaceX-xAI merger. The discussions remain ongoing, and a transaction is not yet guaranteed, however.
AI and space infrastructure
A potential merger with xAI would align with Musk’s stated strategy of integrating artificial intelligence development with space-based systems. Musk has previously said that space-based infrastructure could support large-scale computing by leveraging continuous solar energy, an approach he has framed as economically scalable over time.
xAI already has operational ties to Musk’s other companies. The startup develops Grok, a large language model that holds a U.S. Department of Defense contract valued at up to $200 million. AI also plays a central role in SpaceX’s Starlink and Starshield satellite programs, which rely on automation and machine learning for network management and national security applications.
Musk has previously consolidated his businesses through share-based transactions, including Tesla’s acquisition of SolarCity in 2016 and xAI’s acquisition of X last year. Bloomberg has also claimed that Musk is considering a merger between SpaceX and Tesla in the future.
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.
Rumored SpaceX-xAI merger gets apparent confirmation from Elon Musk
Tesla analyst claims another vehicle, not Model S and X, should be discontinued
