Here Is Why Tesla Just Settled an FSD-Related Lawsuit

Tesla's Full Self-Driving (FSD) add-on for its bespoke Advanced Driver-Assistance System (ADAS), commonly known as the Autopilot, has been a divisive topic for quite some time, with critics continuing to pan the EV giant for what they consider a classic case of overpromise and under-delivery. When paired with serious and persistent safety-related questions, ones that have now prompted a slew of federal and state-level investigations, Tesla's FSD has transformed into the company's proverbially exposed underbelly.

Tesla’s Autopilot can steer, accelerate, and brake vehicles independently. However, currently, the ADAS is primarily intended for highways, and Tesla requires drivers to maintain vigilance on the road. The FSD adds to the Autopilot’s capabilities and can be acquired right now for a $15,000 lump-sum payment or via a monthly subscription that ranges between $99 and $199, depending on the base Autopilot variant.

As we noted in a previous post, Tesla is currently being investigated by California’s DMV and the Office of the Attorney General for supposedly misleading customers by falsely touting the “autonomous” capabilities of its electric vehicles in advertisements. The EV giant's bespoke ADAS is also under the scrutiny of the SEC and the Department of Justice. To make matters worse, the US Office of Defects Investigation (ODI) has also opened a preliminary evaluation of Tesla’s 2023 Model 3 and Model Y, citing 12 reports of inability to steer the vehicle and loss of power steering.

Tesla's FSD-Related Lawsuits

Along with official investigations, Tesla also continues to face a number of lawsuits in relation to the FSD capability of its Autopilot. Recently, a jury in Riverside, California, exonerated the company in a $400 million lawsuit related to a fatal accident in 2019, with crash survivors contending that an Autopilot-related defect caused the accident, while the company hammered on the fact that the deceased was drunk and that the Autopilot was supposedly not active at the time of the crash.

Earlier in 2023, a jury in Los Angeles also sided with Tesla in rejecting a plaintiff's assertions that the Autopilot had caused her Model S to veer into the median section of a city street.

This brings us to the crux of the matter. Given the possibility of hits to its cherished image, Tesla has been quite understandably reluctant to settle its FSD-related lawsuits. However, the company appears to have done just that recently, potentially opening a new can of worms. As per a recent post on the Tesla Motor Club, a UK resident bought a Model 3 back in 2019 in conjunction with a payment of 5,800 British Pound Sterling for the FSD add-on. Contrary to Tesla's promises, the FSD was not city-ready by the end of 2019, prompting the user to sue the EV giant under the UK's Consumer Rights Act 2015. Just before the trial was set to commence on the 17th of November, 2023, Tesla approached the user for a settlement, initially pinning confidentiality clauses along with the settlement amount. Eventually, however, Tesla agreed to withdraw its demands for confidentiality and also upped the settlement amount from 5,800 GBP to 8,015.22 GBP.

This settlement now potentially opens a whole new can of worms for Tesla, especially in the UK.

Bear in mind that Tesla is currently facing at least five distinct FSD-related lawsuits in the US. It remains to be seen whether this uncharacteristic settlement will have any bearing on the company's ongoing court trials.

A New 25,000-Euro EV?

In a related development, Tesla seems to have supercharged its base by floating the possibility of manufacturing a 25,000-Euro EV in Giga Berlin, as per Reuters' sources.

Since the report was quite light on specific details, it is inarguably being panned by Tesla critics.

Do you think Tesla's opting for a settlement will open the doors to further legal trouble? Let us know your thoughts in the comments section below.

About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.

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