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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
Elon Musk’s net worth is nearing $800 billion, and it’s no small part due to xAI
A newly confirmed $20 billion xAI funding round valued the business at $250 billion, adding an estimated $62 billion to Musk’s fortune.
Elon Musk moved within reach of an unprecedented $800 billion net worth after private investors sharply increased the valuation of xAI Holdings, his artificial intelligence and social media company.
A newly confirmed $20 billion funding round valued the business at $250 billion, adding an estimated $62 billion to Musk’s fortune and widening his lead as the world’s wealthiest individual.
xAI’s valuation jump
Forbes confirmed that xAI Holdings was valued at $250 billion following its $20 billion funding round. That’s more than double the $113 billion valuation Musk cited when he merged his AI startup xAI with social media platform X last year. Musk owned roughly 49% of the combined company, which Forbes estimated was worth about $122 billion after the deal closed.
xAI’s recent valuation increase pushed Musk’s total net worth to approximately $780 billion, as per Forbes’ Real-Time Billionaires List. The jump represented one of the single largest wealth gains ever recorded in a private funding round.
Interestingly enough, xAI’s funding round also boosted the AI startup’s other billionaire investors. Saudi investor Prince Alwaleed Bin Talal Alsaud held an estimated 1.6% stake in xAI worth about $4 billion, so the recent funding round boosted his net worth to $19.4 billion. Twitter co-founder Jack Dorsey and Oracle co-founder Larry Ellison each owned roughly 0.8% stakes that are now valued at about $2.1 billion, increasing their net worths to $6 billion and $241 billion, respectively.
The backbone of Musk’s net worth
Despite xAI’s rapid rise, Musk’s net worth is still primarily anchored by SpaceX and Tesla. SpaceX represents Musk’s single most valuable asset, with his 42% stake in the private space company estimated at roughly $336 billion.
Tesla ranks second among Musk’s holdings, as he owns about 12% of the EV maker’s common stock, which is worth approximately $307 billion.
Over the past year, Musk crossed a series of historic milestones, becoming the first person ever worth $500 billion, $600 billion, and $700 billion. He also widened his lead over the world’s second-richest individual, Larry Page, by more than $500 billion.
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Tesla Cybercab sighting confirms one highly requested feature
The feature will likely allow the Cybercab to continue operating even in conditions when its cameras could be covered with dust, mud, or road grime.
A recent sighting of Tesla’s Cybercab prototype in Chicago appears to confirm a long-requested feature for the autonomous two-seater.
The feature will likely allow the Cybercab to continue operating even in conditions when its cameras could be covered with dust, mud, or road grime.
The Cybercab’s camera washer
The Cybercab prototype in question was sighted in Chicago, and its image was shared widely on social media. While the autonomous two-seater itself was visibly dirty, its rear camera area stood out as noticeably cleaner than the rest of the car. Traces of water were also visible on the trunk. This suggested that the Cybercab is equipped with a rear camera washer.
As noted by Model Y owner and industry watcher Sawyer Merritt, a rear camera washer is a feature many Tesla owners have requested for years, particularly in snowy or wet regions where camera obstruction can affect visibility and the performance of systems like Full Self-Driving (FSD).
While only the rear camera washer was clearly visible, the sighting raises the possibility that Tesla may equip the Cybercab’s other external cameras with similar cleaning systems. Given the vehicle’s fully autonomous design, redundant visibility safeguards would be a logical inclusion.
The Cybercab in Tesla’s autonomous world
The Cybercab is Tesla’s first purpose-built autonomous ride-hailing vehicle, and it is expected to enter production later this year. The vehicle was unveiled in October 2024 at the “We, Robot” event in Los Angeles, and it is expected to be a major growth driver for Tesla as it continues its transition toward an AI- and robotics-focused company. The Cybercab will not include a steering wheel or pedals and is intended to carry one or two passengers per trip, a decision Tesla says reflects real-world ride-hailing usage data.
The Cybercab is also expected to feature in-vehicle entertainment through its center touchscreen, wireless charging, and other rider-focused amenities. Musk has also hinted that the vehicle includes far more innovation than is immediately apparent, stating on X that “there is so much to this car that is not obvious on the surface.”
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Tesla seen as early winner as Canada reopens door to China-made EVs
Tesla had already prepared for Chinese exports to Canada in 2023 by equipping its Shanghai Gigafactory to produce a Canada-specific version of the Model Y.
Tesla seems poised to be an early beneficiary of Canada’s decision to reopen imports of Chinese-made electric vehicles, following the removal of a 100% tariff that halted shipments last year.
Thanks to Giga Shanghai’s capability to produce Canadian-spec vehicles, it might only be a matter of time before Tesla is able to export vehicles to Canada from China once more.
Under the new U.S.–Canada trade agreement, Canada will allow up to 49,000 vehicles per year to be imported from China at a 6.1% tariff, with the quota potentially rising to 70,000 units within five years, according to Prime Minister Mark Carney.
Half of the initial quota is reserved for vehicles priced under CAD 35,000, a threshold above current Tesla models, though the electric vehicle maker could still benefit from the rule change, as noted in a Reuters report.
Tesla had already prepared for Chinese exports to Canada in 2023 by equipping its Shanghai Gigafactory to produce a Canada-specific version of the Model Y. That year, Tesla began shipping vehicles from Shanghai to Canada, contributing to a sharp 460% year-over-year increase in China-built vehicle imports through Vancouver.
When Ottawa imposed a 100% tariff in 2024, however, Tesla halted those shipments and shifted Canadian supply to its U.S. and Berlin factories. With tariffs now reduced, Tesla could quickly resume China-to-Canada exports.
Beyond manufacturing flexibility, Tesla could also benefit from its established retail presence in Canada. The automaker operates 39 stores across Canada, while Chinese brands like BYD and Nio have yet to enter the Canadian market directly. Tesla’s relatively small lineup, which is comprised of four core models plus the Cybertruck, allows it to move faster on marketing and logistics than competitors with broader portfolios.
Elon Musk’s net worth is nearing $800 billion, and it’s no small part due to xAI
Tesla Cybercab sighting confirms one highly requested feature
