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Tesla FSD’s prolonged release doesn’t make it a ‘fraud,’ company says
Tesla Full Self-Driving’s prolonged release doesn’t make it a “fraud,” the company said in a motion to dismiss a case.
Tesla is currently involved in a class-action lawsuit from a few Autopilot and Full Self-Driving customers and has recently filed a motion to dismiss the case with the U.S. District Court in San Francisco. In that motion, a statement was made by Tesla’s attorneys that may have been taken out of context by some media reports.
Teslarati obtained a copy of the motion, and here is what we found.
After some background information on FSD, Tesla noted that each of the plaintiffs purchased a vehicle, and “all but one allegedly purchase the FSDC package.” (FSDC is an acronym for full self-driving capability.)
“Plaintiffs knew at the time of purchase that their cars were not completely autonomous. And they knew that the timeline towards more complete autonomy was contingent upon numerous factors, including software development and regulatory approval. Yet now they sue Tesla, complaining that their cars are not completely autonomous.”
The document noted that four out of five of the named plaintiffs have valid arbitration agreements with Tesla that should be enforced and cover all of their claims. The one plaintiff who opted out “advanced a consolidated complaint riddled with defects, and that should be dismissed.”
The plaintiff “sued too late–five years after he purchased his vehicle and the optional software package, well after any of his claims accrued. All of his claims are time-barred and should be dismissed. Moreover, the hundreds-of-paragraph, narrative complaint fails to support a single cognizable legal theory. The Complaint makes no mention of the parties’ written contract or Tesla’s car warranty. It instead cherry-picks numerous statements allegedly made by Tesla and attempts to manufacture claims for fraud and breach of warranty.”
Tesla’s attorneys made several statements, including that headline-worthy one regarding FSD and failure. However, the attorneys never claimed that FSD is a failure. In the document, the attorneys pointed out that the complaint “identifies no statement that Tesla made that was fraudulent.”
Additionally, it added that no there was no statement made that Tesla’s vehicles, including those equipped with the FSDC package, were fully autonomous at the time of the Plaintiff’s purchase. Tesla’s website also made it very clear that those vehicles were not.
Tesla’s attorneys noted that the plaintiff allegedly researched Tesla’s online and public statements and reviewed them before buying his vehicles. The labels of “Autopilot,” “Enhanced Autopilot,” or “Full Self-Driving Capability” didn’t mean that the vehicles were fully autonomous. Tesla’s attorneys also noted that Tesla’s user manuals plainly showed this as well.
“Nor would any reasonable consumer purchase a Tesla vehicle with the belief that it is fully autonomous based solely on these labels,” the attorneys said.
Instead, each of the plaintiffs alleged that they “decided to purchase [his or her] vehicle and the ADAS packages after researching, reviewing, and relying on Tesla’s online and other public statements.”
The plaintiff’s “assertion that Tesla promised the vehicles were already fully autonomous when they were sold rings hollow,” the attorneys stated.
“His assertion that Tesla promised to release completely autonomous capabilities ‘within a reasonable time after,’ his purchase fares no better.”
“No allegations show that Tesla promised that the FSDC package would enable full autonomy within a specified period of time. Many of the statements quoted in the Complaint did not even concern the FSDC package,” the attorneys said, adding that this makes it irrelevant to the plaintiff’s claims.
“In addition, the quoted statements were also often accompanied by and subject to the qualifier that a release of fully autonomous capabilities to the general public would require government approval, a variable over which Tesla had no control, and that any regulatory clearance would require a vast amount of data to show that completely autonomous driving is significantly safer than human driving.”
The attorneys cited another federal court that said similar statements “do not constitute fraud” because they indicate that Tesla wasn’t making the absolute representation the Plaintiff said he was.
“Same here. Especially under the heightened Rule 9(b) standard, no allegation suggests that the aspirational statements that Tesla did make were, somehow, false when made. See Richardson, 2000 WL.”
“To the contrary, allegations in the Complaint demonstrate that Tesla has been constantly improving its ADAS technology by releasing software updates, with a goal of achieving more and better autonomy capabilities in the future.”
“Mere failure to realize a long-term, aspirational goal is not fraud.“
In reference to the above statement, the attorneys pointed out that the courts often rejected the argument that a plaintiff can prove the fraudulent intent by pointing to Tesla’s “subsequent failure to perform under the agreement.”
Since launching the software in 2015, Tesla has made a lot of progress toward FSD and autonomous. Tesla has had two AI Day events explaining the technology being developed and used. And Tesla has since launched an FSD Beta testing program, and you can read the recent Tesla FSD Beta news here.
Disclosure: Johnna is a $TSLA shareholder and believes in Tesla’s mission.
Your feedback is welcome. If you have any comments or concerns or see a typo, you can email me at johnna@teslarati.com. You can also reach me on Twitter at @JohnnaCrider1.
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‘Tesla tax’ could be no more in United Kingdom
A tax on vehicles in the United Kingdom is set to be adjusted after automakers have blamed it for struggling sales.
A controversial tax set on cars that are above the £40,000 price threshold in the United Kingdom could be abandoned, as the “Tesla Tax,” as it is commonly referred to, is taking the blame for poor EV sales.
The tax has been imposed on ICE vehicles since 2017, but on April 1, 2025, the “Expensive Car Supplement,” or ECS, was applied to new EVs sold after that date, a move that was initiated in an act of fairness.
Tesla best-rated car brand in UK, beats Toyota in reliability: survey
However, the tax is now being blamed for sluggish EV sales across various parts of Europe. In the UK, manufacturers are blaming the tax for making it more difficult to reach sales quantities for binding green car sales targets. Missing these sales goals could cost manufacturers millions or even billions of dollars.
A leaked letter seen by This Is Money and MailOnline shows the UK is ready to reconsider the tax, which is combined with a Vehicle Excise Duty (VED) on cars in the second year after they are registered.
The tax could be applied to vehicles at a higher price point, or it could be eliminated altogether. However, Ben Maguire, a Lib Dem MP for one region in the UK, said:
“We will consider raising the threshold for zero-emission cars only at a future fiscal event to make it easier to buy electric cars.”
Several companies said an adjustment to the tax would be “a move in the right direction,” and one of the major new car retailers in the UK said sales targets are “unrealistic” with the tax currently set at where it is.
Even still, without the adjustment, retailers are concerned that EVs are not at a spot where consumers truly can justify them as a purchase. One company said “cost, lack of incentives, and lack of a public charging infrastructure” are the biggest bottlenecks in the adoption of EVs.
News
Tesla’s new Model S and X spotted, but they leave a lot to be desired
The Model S and Model X testing mules spotted by The Kilowatts have few minor visual changes.
Tesla has been hinting for a few months now that the flagship Model S and Model X would be getting some attention in 2025 as the vehicles continue to be sold in extremely low volumes.
Both models seem to be under the knife, especially as their newest versions were spotted in California earlier this week.
However, images of the vehicles seem to show that Tesla is not planning a major overhaul, which begs the question: why even do it in the first place?
Tesla makes a decision on the future of its flagship Model S and Model X
The Model S and Model X are grouped with the Cybertruck in Tesla’s quarterly delivery releases, and Q1 saw just 12,881 units of the three cars delivered. The Cybertruck likely made up the majority of this number, as some outlets reported around 6,400 deliveries of the all-electric pickup in Q1.
This is unconfirmed.
The Model S and Model X have stuck around for “sentimental reasons,” according to CEO Elon Musk, who said back in 2021:
“I mean, they’re very expensive, made in low volume. To be totally frank, we’re continuing to make them more for sentimental reasons than anything else. They’re really of minor importance to the future.”
However, the cars seem to be in need of a serious refresh. As Tesla changed up the exterior aesthetic on both the Model 3 and Model Y, recent images captured of the Model X by The Kilowatts seem to show this is not the strategy with the Model X or Model S:
— The Kilowatts 🚗⚡️ (@klwtts) May 22, 2025
As we can see, the overall aesthetic of the X, if this is what Tesla plans to release, has literally no changes from a purely visual standpoint. There is the addition of the front bumper camera, which was first implemented on the Cybercab unveiled in October 2024, and then on the new Model Y this year.
There are some new 20″ wheels, and the interior has been fitted with ambient lighting.
The Model S looked to be relatively the same, other than these few hardware changes, including a rear diffuser on this Plaid that was spotted:
Tesla is definitely doing some things 👀 pic.twitter.com/qchMiAWEoT
— The Kilowatts 🚗⚡️ (@klwtts) May 22, 2025
While these changes are welcome and should be beneficial, they don’t seem like they will encourage major sales growth, which might be something Tesla is okay with.
Admitting the two cars are low volume and not contributors to the company’s long-term goals, Musk is likely willing to just upgrade things to make these more compatible and better functioning with the Full Self-Driving suite.
Earlier this year, VP of Vehicle Engineering Lars Moravy said the S and X were not going anywhere and would get “some love” before the end of 2025:
“Just give it a minute. We’ll get there. The upgrade a couple of years ago was bigger than most people thought in terms of architecture and structure of the car got a lot better, too. But, we’ll give it some love later this year and make sure it gets a little bit…you know, with the stuff we’ve been putting in 3 and Y. Obviously, with 3 and Y, the higher volume stuff, you’ve gotta focus there.”
It seems these strategies have held true — the S and X appear to be getting what the 3 and Y got with the ambient lighting and front bumper camera (at least on the Model Y).
Elon Musk
Tesla set for ‘golden age of autonomous’ as Robotaxi nears, ‘dark chapter’ ends: Wedbush
Tesla is set to win big from the launch of the Robotaxi platform, Wedbush’s Dan Ives said.
Tesla (NASDAQ: TSLA) is set to kick off its own “golden age of autonomous growth” as its Robotaxi platform nears launch and a “dark chapter” for the company has evidently come to a close, according to Wedbush analyst Dan Ives.
Ives has jostled his price target on Tesla shares a few times already this year, usually switching things up as the market sways and the company’s near-term outlook changes. His price target on Tesla has gone from $550 to $315 to $350 back to $500 this year, with the newest adjustment coming from a note released early on Friday.
🚨 Wedbush’s Dan Ives is raising his price target on Tesla $TSLA from $350 to $500 as the “golden age of autonomous” nears:
“We believe the golden age of autonomous is now on the doorstep for Tesla with the Austin launch next month kicking off this key next chapter of growth for…
— TESLARATI (@Teslarati) May 23, 2025
As CEO Elon Musk has essentially started to dwindle down his commitment to the Department of Government Efficiency (DOGE) altogether, Ives believes that Tesla’s “dark chapter” has come to a close:
“First lets address the elephant in the room…2025 started off as a dark chapter for Musk and Tesla as Elon’s role in the Trump Administration and DOGE created a life of its own which created brand damage and a black cloud over the story….but importantly those days are in the rear-view mirror as we are now seeing a recommitted Musk leading Tesla as CEO into this autonomous and robotics future ahead with his days in the White House now essentially over.”
Ives believes Tesla’s launch of Robotaxi should be the company’s way to unlock at least $1 trillion in value alone, especially as the Trump White House will fast-track the key initiatives the automaker needs to get things moving in the right direction:
“The $1 trillion of AI valuation will start to get unlocked in the Tesla story and we believe the march to a $2 trillion valuation for TSLA over the next 12 to 18 months has now begun in our view with FSD and autonomous penetration of Tesla’s installed base and the acceleration of Cybercab in the US representing the golden goose.”
There are some concerns moving forward, but none of which relate to the AI/autonomous play that Ives primarily focuses on within the Friday note. Instead, they are related to demand in both Europe and Asia, as Ives said, “there is still wood to chop to turn around Model Y growth” in both of those markets.
Nevertheless, the big focus for Ives is evidently the launch of Robotaxi and the potential of the entire autonomous division that Tesla plans to offer as a ride-sharing service in the coming months. Ives also believes a 50 percent or more penetration of Full Self-Driving could totally transform the financial model and margins of Tesla moving ahead.
Aware of the setbacks Tesla could encounter, Ives still believes that Tesla will establish itself as “the true autonomous winner over” and that investors will recognize the AI vision the company has been so bullish on.
Ives pushed his price target to $500. Tesla shares are down just under 1% at the time of publication. They are trading at $337.88 at 11:45 on the East Coast.
‘Tesla tax’ could be no more in United Kingdom
Tesla’s new Model S and X spotted, but they leave a lot to be desired
Tesla set for ‘golden age of autonomous’ as Robotaxi nears, ‘dark chapter’ ends: Wedbush
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