Tesla has marketed its Full Self-Driving feature to consumers in China, charging between RMB 56,000 and RMB 64,000 per vehicle. However, many buyers who purchased this technology from 2019 to 2021 now feel misled, as they still cannot rely on their cars to drive autonomously.
Recently, ten Tesla owners took legal action in Beijing's Daxing District People’s Court, claiming they were victims of deceptive advertising and consumer fraud related to the Full Self-Driving package. The plaintiffs allege that Tesla promoted a fully autonomous feature while providing a product that functions more as Intelligent Driving Assistance. They argue that the disparity between the product's label and its actual capabilities is at the core of the lawsuit.
What damages are being claimed? The total sought exceeds RMB 3.95 million. Nine plaintiffs are requesting refunds along with triple damages as allowed under Chinese consumer protection law for fraudulent practices. One plaintiff is asking for triple damages on the entire vehicle cost. This legal action highlights the growing frustration among Tesla owners whom they feel have not received the promised autonomous driving experience.
Further complicating the issue is a hardware limitation alleged by the plaintiffs. They claim that the FSD feature only operates on Tesla's newer HW4 hardware, while their vehicles, purchased during the specified years, are equipped with the older HW3 hardware.
As the Beijing court hears the case, it is noteworthy that Tesla is not alone in facing scrutiny. Similar class actions have emerged in the United States, Australia, and Europe, where customers argue that they paid significant amounts for a feature that has not delivered on its promises. Individual small-claims court victories have already been achieved by customers seeking refunds for FSD, setting a precedent for future cases.
What significance does China hold for Tesla? As Tesla’s second-largest market, China plays a pivotal role in the company’s growth strategy. Local competitors such as BYD, NIO, and XPeng are aggressively marketing their own sophisticated driver-assistance technologies. Although the financial stakes of the lawsuit may seem minimal for Tesla, the potential ramifications of this case could set a precedent for all FSD buyers in China, fundamentally impacting Tesla’s reputation and market dynamics.