Abraham Jewett  |  March 31, 2023

Category: Auto News

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Inside of a Tesla displaying self driving feature
(Photo Credit: Scharfsinn/Shutterstock)

Tesla self-driving class action lawsuits overview: 

  • Who: A consumer filed an antitrust class action lawsuit against Tesla Inc. following two recalls the company recently initiated over concerns related to its Full Self-Driving beta feature. 
  • Why: Tesla has been accused of monopolizing the market for access to repair services and compatible vehicle replacement parts for Tesla vehicles.
  • Where: The class action lawsuit was filed in California federal court.

A consumer hit Tesla with an antitrust class action lawsuit earlier this month in the wake of a pair of recalls related to its Full Self-Driving feature. 

Plaintiff Virginia M. Lambrix claimed earlier this month that Tesla effectively monopolized the market for access to repair services and compatible vehicle replacement parts for its vehicles. 

Lambrix argues Tesla designed its vehicles so that any maintenance or repairs would require management tools only available to the automaker, while allegedly also limiting access to manuals and diagnostic tools, among other things. 

Tesla has ultimately forced vehicle owners to pay “supracompetitive fees” to maintain and repair their vehicles and endure “exorbitant” wait times while doing so, the Tesla class action alleges. 

“Tesla owners … effectively have only one option: schedule service at Tesla (or within the limited network of Tesla-approved service centers), where their Tesla will be maintained or repaired using only Tesla (original equipment manufacturer) parts,” the Tesla class action states. 

Tesla recalls nearly 363,000 of its vehicles over Full Self-Driving beta feature 

The class action lawsuit followed a February recall that impacted almost 363,000 Tesla Model S, Model X, Model 3 and Model Y vehicles equipped with its Autosteer on City Streets self-driving feature. 

Tesla initiated the recall over concerns the self-driving feature could cause Tesla vehicles to potentially “infringe upon local traffic laws or customs” when at intersections or traveling through yellow lights. 

The recall impacted certain model year 2016-2023 Tesla Model S and Model X vehicles, 2017-2023 Model 3 vehicles and 2020-2023 Model Y vehicles equipped with the Full Self-Driving Beta feature. 

Tesla, while acknowledging that the feature could potentially infringe upon traffic laws in “certain rare circumstances,” maintained that, ultimately, ensuring the vehicle is being operated safely is up to its driver. 

“The driver is responsible for operation of the vehicle whenever the feature is engaged and must constantly supervise the feature and intervene … as needed to maintain safe operation of the vehicle,” the Tesla recall states. 

At the time, Tesla said it planned on releasing an over-the-air software update in the coming weeks — at no cost to vehicle owners — that would resolve the issue. 

Tesla pauses new installations of Full Self-Driving beta feature following NHTSA request 

Earlier this month, Tesla announced it paused new installations of its Full Self-Driving beta software for vehicles in both the United States and Canada after the National Highway Traffic Safety Administration (NHTSA) determined the feature could present a crash risk. 

The recall impacted nearly 363,000 Tesla vehicles and included Tesla Model S, Model X, Model 3 and Model Y vehicles equipped with the automakers’ Full Self-Driving beta feature. 

While Tesla vehicle owners who already purchased the self-driving feature add-on — at a cost of $15,000 — could still use it, they would not be able to access new features until Tesla resolved concerns brought by the NHTSA. 

Tesla said at the time that it did not have a timeline for when it would be addressing the issue but informed its customers that they did not have to take any immediate action on their end. 

Tesla begins distributing updated version of Full Self-Driving beta feature

Nearly a month later, in late March, Tesla began distributing an updated version of its Full-Self Driving beta feature for the first time since it initiated the recall. 

The updated version improved the self-driving feature’s decision-making abilities at yellow lights and abilities to slow down at stop signs and adjust to changes in the speed limit and lane changes when switching from a turn lane to going straight. 

Tesla reminded drivers that they still are ultimately responsible for the safety of their vehicle and, since the add-on can still potentially make a wrong decision, should continue to keep their hands on the wheel at all times when using the Full Self-Driving beta feature. 

Tesla also said the most important time to pay close attention while using the feature is when their vehicle was at intersections or when navigating narrow roads or sharp turns. 

Do you own a Tesla vehicle equipped with its Full Self-Driving beta feature? Let us know in the comments! 


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