Could Auto Companies Face Lawsuits for Misleading EV Claims

Auto companies, especially those producing electric vehicles (EVs), increasingly face lawsuits alleging they have misled consumers about the capabilities and features of their products. A prominent example is Tesla, which has been the subject of multiple legal actions worldwide over claims related to its Full Self-Driving (FSD) technology. These lawsuits highlight a broader legal risk for automakers who promote advanced EV features that may not yet be fully realized or available.

Tesla’s FSD feature has been at the center of several class-action lawsuits, particularly in the United States and China. In California, a federal judge allowed a class-action lawsuit to proceed, where Tesla owners alleged that the company misrepresented the readiness and functionality of its FSD system. Plaintiffs argued that Tesla’s advertising and public statements, including those by CEO Elon Musk, suggested that fully autonomous driving was imminent or already available, which was not the case. Buyers paid thousands of dollars for this feature expecting a level of autonomy that Tesla’s vehicles have not delivered. The court found enough commonality among the claims to allow the lawsuit to move forward as a group action, underscoring the seriousness of the allegations and the potential for widespread consumer impact.

Similarly, in China, Tesla faces legal challenges from customers who purchased the FSD package based on promises that the technology would soon be fully operational. Plaintiffs in Beijing’s Daxing District Court accused Tesla of fraudulent sales practices, claiming the company failed to deliver the promised autonomous driving capabilities despite charging a premium price. These customers also pointed to public statements by Tesla representatives and Musk that influenced their purchase decisions. The legal actions in China reflect growing global scrutiny of EV makers’ marketing claims, especially when advanced technologies like self-driving are involved.

The core issue in these lawsuits is whether automakers have engaged in deceptive or misleading advertising by overstating the capabilities of their EVs. When companies promote features such as full self-driving or enhanced battery performance but fail to deliver on those promises within a reasonable timeframe, they risk violating consumer protection laws. These laws are designed to prevent false advertising and ensure that buyers receive products that meet advertised standards.

Beyond Tesla, other automakers have faced similar legal challenges related to defects or misrepresentations in their vehicles. For example, Mazda has been sued over alleged brake defects in its CX-90 model, with plaintiffs claiming the company failed to disclose safety issues and provided only temporary fixes. While this case is not directly about EV technology, it illustrates how automakers can be held accountable for failing to meet