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Los Angeles Times
Los Angeles Times
Business
Russ Mitchell

Tesla says its self-driving technology may be a 'failure' — but not fraud

Tesla Inc. Elon Musk DMV

Tesla's Full Self-Driving technology may be a failure, Tesla lawyers admit — but it's not a fraud.

The electric car company is facing a class-action lawsuit from Autopilot and Full Self-Driving (FSD) technology customers. They claim they were ripped off, duped by statements from co-founder and CEO Elon Musk and marketing materials from Tesla over the past six years suggesting full-fledged autonomous driving was imminent. No Tesla on the road today is capable of full self driving, and yet Tesla sells what it calls a Full Self-Driving Capability for $15,000.

In its defense, Tesla lawyers said that "mere failure to realize a long-term, aspirational goal is not fraud." That argument is contained in a motion to dismiss the case that was filed last week in U.S. District Court in San Francisco.

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