Read the secret encrypted text messages that could help put Sam Bankman-Fried behind bars
Sam Bankman-Fried appears at federal court in New York on Oct. 4, 2023, in this courtroom sketch.
Artist: Claudia Johnson
Much of the government’s case against Sam Bankman-Fried hinges on the testimony and text messages from those in his crypto inner circle who turned against him late last year after the implosion of FTX and sister hedge fund Alameda Research.
Of the dozens of items entered into evidence in the first three weeks of the trial, a bank of messages on encrypted app Signal paint perhaps the clearest picture of Bankman-Fried’s alleged crimes.
Bankman-Fried faces seven criminal counts, including wire fraud, securities fraud and money laundering that could land him in prison for life. Bankman-Fried, the son of two Stanford legal scholars, pleaded not guilty to all charges.
In trying to prove its case to a Manhattan jury, the government has presented a series of Signal exchanges involving Bankman-Fried, Caroline Ellison (his ex-girlfriend and the ex-CEO of Alameda Research), and former friends and top business execs Gary Wang, Nishad Singh and Ryan Salame. They date back to November 2021.
The messages gave jurors a rare look inside the casual conversations that culminated in a scheme described by U.S. Attorney Damian Williams as “one of the biggest financial frauds in American history.”
We’re quoting directly from the Signal messages that were entered as evidence, and not making spelling or other grammatical changes.
Caroline Ellison, former chief executive officer of Alameda Research LLC, center, arrives at court in New York, US, on Tuesday, Oct. 10, 2023.
Yuki Iwamura | Bloomberg | Getty Images
‘Small group chat’
The Signal thread dubbed “small group chat” includes Ellison, Bankman-Fried, and Joe Bankman, the defendant’s father who advised the company on tax-related issues and other things. Also in the group were Ramnik Arora, a former product lead for FTX, Ryne Miller, who was the company’s general counsel, Constance Wang, ex-operating chief, as well as Salame, Singh, Wang and four others.
Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.
Source: SDNY
The thread begins with two messages from Bankman-Fried posted at 3:47 a.m. on Nov. 7, 2022, the day FTX announced a liquidity crisis and began searching for cash to plug the gaping hole in its balance sheet.
At the time, Bankman-Fried pretended in public that all was well.
“FTX is fine. Assets are fine,” he wrote in a tweet that day. The post has since been deleted.
But as Bankman-Fried was tweeting reassurances and promising that customer funds were safe, executives were growing increasingly alarmed at the expanding shortfall, according to prosecutors.
In the “small group chat” thread, Bankman-Fried put forth some “potential todos,” including halting withdrawals, sending a “confident tweet thread” and reaching out to firms like Silverlake, Sequoia, and Apollo as they “wake up over the next few hours” to try and shore up cash.
Later that morning, at about 5:22 a.m., Salame linked to a tweet from an anonymous crypto trader saying, “cant wait for my FTX airdrop for not moving any of my funds.”
Bankman-Fried chimed in with different ideas about how to take advantage of the post in an apparent effort to provide false hope to FTX customers that they’d receive free tokens if they kept their funds on the platform.
Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.
Source: SDNY
The next day, Nov. 8, Ellison appealed to the group for help on optics and public messaging.
She wrote, “multiple people internally asking me whether they should continue to make statements to external parties like ‘Alameda is solvent.’ should i suggest they stall instead? just stall on responding to their messages? or what?”
That’s the same day FTX issued a pause on all customer withdrawals. The price of FTT, FTX’s native token, plummeted by over 75%, and a high-tech bank run was in full force. Out of options, Bankman-Fried turned to Binance CEO Changpeng Zhao, who announced he’d signed a non-binding letter of intent to acquire FTX.
Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.
Source: SDNY
On Nov. 9, Ellison again looked to the group for guidance about how to handle the now infamous all-hands meeting of Alameda’s roughly 30 employees.
She proposed saying, “Alameda is probably going to wind down” and that there was “no pressure” to stay but help with “stuff like making sure our lenders get paid” would be “super appreciated.”
Bankman-Fried suggested she say something about there “being a future of some sort for those who are excited.”
Ellison ended up divulging a lot more than that in the staff meeting.
“Alameda borrowed a bunch of money,” which it used to make investments, Ellison said at the meeting, a secret recording of which was played by the prosecution. But as crypto prices fell, “FTX had a shortfall of user funds” and then “users started withdrawing their funds” and they “realized they would not be able to continue.”
When she was asked by a staffer whose idea it was to plug Alameda’s loan losses with FTX customer money, she said, “Um, Sam, I guess,” and giggled.
“FTX basically always allowed Alameda to, like, borrow user funds, as far as I know,” Ellison said on the recording.
Meanwhile, a day after signing the non-binding purchase agreement, Binance withdrew the offer, citing reports of “mishandled customer funds” and federal investigations.
Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.
Source: SDNY
‘Lots of withdrawals’
Zhao, an early investor in FTX before becoming a principal rival, had made himself a central character in the FTX downfall days earlier.
On Nov. 6, he tweeted that because of “recent revelations that have came [sic] to light, we have decided to liquidate any remaining FTT on our books.”
In a group chat with Bankman-Fried, Ellison, and Singh starting that day, Singh wrote “lots of withdrawals on ftx are queueing up,” with net changes of $1.25 billion in the last day, $230 million in the last three hours, and $120 million in the last hour.
Ellison responded with a “:(” and Bankman-Fried with an “oof” after first mistakenly writing “of.”
The three continued to strategize. Singh suggested a few hours later that they reach out to Zhao privately and “ask for a truce” to “stem the bleed,” though he and Bankman-Fried both worried that Binance wouldn’t deescalate in public.
Ellison separately tried to figure out what to tell Salame about whether FTX could meet all withdrawals. Bankman-Fried suggested she write, “we can meet a ton, though it’s already getting large.”
Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.
Source: SDNY
Later, Sam Trabucco, who had already departed as co-CEO of Alameda Research in August 2022, as well as Ellison, Ben Xie (Alameda’s head of trading), and Bankman-Fried, were in a group chat discussing how to respond to Zhao’s threat to liquidate his FTT tokens.
Ellison, who told jurors that she largely avoided social media, said she would tweet at CZ, a nickname for Zhao, that FTX would buy his entire stake at $22 per coin. Ellison also testified about the practice of using FTX customer funds funneled through Alameda to buy FTT to buoy the price during times of market volatility.
Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.
Source: SDNY
Bankman-Fried weighed in within minutes, writing, “I think the main point is just to counter the PR/narrative here — and Binance probably won’t take us up on it; I also think FWIW that the market is likely to buy more if we tweet it, but idk.” (FWIW is an acronym for for what it’s worth. IDK stands for I don’t know.)
Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.
Source: SDNY
The author’s visit
Author Michael Lewis, whose book profiling Bankman-Fried was published the day the trial began, was also the subject of some Signal exchanges.
In a chat on Jan. 5, 2022, Bankman-Fried alerted a group that included Ellison and Singh that Lewis would be coming to the Bahamas the next month to do reporting.
Ellison said her “instincts are more toward under the radar.” Bankman-Fried, a notorious press hound, responded, “same, except exactly the opposite.”
‘People of the House’
Adam Yedidia, one of the prosecution’s lead witnesses, met Bankman-Fried in college at the Massachusetts Institute of Technology, and the pair remained close friends.
In his testimony, Yedidia referred to a Signal thread called “People of the House,” referring to Bankman-Fried’s $35 million penthouse, where many employees lived.
In terms of who was paying the rent, Yedidia recalled Bankman-Fried saying he “assumed it’s just alameda paying for it in the end.”
Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.
Source: SDNY
The subject of campaign donations was pivotal to Singh’s testimony. The former FTX engineering chief, who pleaded guilty to six charges in February, alleged that his former boss was behind much of the scheme to funnel money to political campaigns.
Singh testified that Bankman-Fried directed money held in accounts belonging to Alameda Research be used for political donations. That continued even after Bankman-Fried was apparently aware that his crypto hedge fund couldn’t pay back the $13 billion in FTX customer funds it had borrowed.
While Bankman-Fried doesn’t face chares for campaign violations in this trial, a superseding indictment alleged he used customer funds to make more than $100 million in campaign contributions for the 2022 midterm elections. The government has incorporated that accusation within two of the charges that are still standing: wire fraud and money laundering.
Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.
Source: SDNY
‘Donation Processing’
Singh walked the jury through how the process worked.
He described a Signal chat dubbed “Donation Processing” that included Bankman-Fried and his brother, Gabe, Salame, and a political consultant named Michael Sadowsky, among others. Singh testified that Bankman-Fried or his brother would use this chat to request donations be made in Singh’s name. Salame, who had access to Singh’s bank account at Prime Trust Bank, would set up the transfer and then ping Singh in the channel to prompt him to go to his email and approve the wire request.
“My role was to click a button,” Singh said of the operation, adding that Salame had other ways to make the transfer from Singh’s funds that did not involve Singh having to do anything at all.
Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.
Source: SDNY
Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.
Source: SDNY
Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.
Source: SDNY
In a separate Signal chat between Singh and Sadowsky, Singh wrote on Jul. 5, 2022, that he was “averse” to “explicitly-woke stuff” but added that it was “hard to interact productively with democrats without that.”
Sadowsky called Singh the “center left face of our spending,” meaning that he would be “giving to a lot of woke s—.”
So, “if you’re not comfortable about it, you should think about that a lot,” wrote Sadowsky.
Singh responded, “don’t love boxing myself into only associating with people i don’t like” and said he would look to see if there were “other viable people at FTX for it.”
In questioning witnesses, the government homed in on loans made to Wang and Singh in the range of hundreds of millions of dollars.
Direct messages between Singh and Bankman-Fried showed an attempt by the witness to be cleared of these debt obligations.
In a direct appeal to Bankman-Fried, Singh wrote on Nov. 6, 2022, “one thing that’d seriously help me is if I didn’t have debts.”
He wrote, “I think most of them are loans: 500m for me exercising, more for US investments. I hope we can unwind these but not sure.” He said he would return anything he had in his bank account, but there wasn’t much there.
I “(will think about this),” Bankman-Fried wrote.
Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.
Source: SDNY
In the same thread, on Nov. 8, Singh wrote that Ryne Miller, FTX’s general counsel, seemed “super on edge” and “likely to resign” if they didn’t get it right.
Singh wrote, “this is wildly selfish of me, but they may need to know that it wasn’t a ton of people orchestrating it.” He added that, “it makes them more likely to want to be here to help save the situation and the others at least.”
Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.
Source: SDNY
As the grand scheme collapsed, Ellison expressed a great deal of relief in a private chat with Bankman-Fried.
Ellison wrote, “this is the best mood I’ve been in in like a year tbh.” (TBH is short for to be honest.)
In three consecutive messages, Bankman-Fried responded, “wow,” “uh,” “congrats?”
Ellison wrote, “I think I just had an increasing dread of this day that was weighing on me for a long time, and now that it’s actually happening, it just feels great to get it over with one way or another.”
Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.
Source: SDNY
Environment
Anker SOLIX C2000 Gen 2 power station and bundles 50% off early-bird savings, Jackery HomePower 3600 Plus at new low, more
This week’s Green Deals are kicking off with a new release, as Anker launches its SOLIX C2000 Gen 2 Portable Power Station 50% off early-bird savings that will score the power station (as well as bundle options) starting from $749 on October 28. Right behind it, as part of Jackery’s extended Prime Day Sale (lasting only a few more days), you can find the brand’s latest HomePower 3600 Plus Portable Power Station and bundles at new low prices starting from $1,519, which also comes with a FREE refurbished Explorer 300 Plus station ($299 value). We also have a selection of 1.3 to 18-gallon Camplux electric water heater discounts, BougeRV’s 2-bike carrier for SUVs and trucks back at its lowest price, and many extended/ongoing Prime Day Sales waiting for you below – with many more available to browse in our Post-Prime Day Green Deals hub here, like Lectric’s Better-Than-Prime e-bike Sale that is ending tonight.
Head below for other New Green Deals we’ve found today and, of course, Electrek’s best EV buying and leasing deals. Also, check out the new Electrek Tesla Shop for the best deals on Tesla accessories.
Anker kicks off 50% early-bird discounts on new SOLIX C2000 Gen 2 power station starting from $749
Anker has launched its early-bird savings promotion on its upcoming SOLIX C2000 Gen 2 Portable Power Station which is offering up to 50% off the station and/or its bundle until its official launch on October 28. Subscribing on the page here before then gives you an emailed code to score this new power station at $749 shipped once it goes live on launch day, as well as its bundle options for either an expansion battery or a 400W solar panel at up to $1,249 off. This all-new second-generation model will carry a full $1,499 MSRP outside of sales, while the 400W solar bundle will go for $2,398 and the expansion battery bundle will go for $2,498 – and jumping on these savings now scores you 50% off all the options! Head below to get a rundown on what to expect, and be sure to make your decisions before this juicy deal ends.
Following the same trend as the C1000 Gen 2 model, the brand’s new SOLIX C2000 Gen 2 power station comes as a redesigned update to the brand’s popular F2000 legacy unit, with more power output and faster recharging times, all packed into a lighter and more compact unit. It starts with the same 2,048Wh LiFePO4 battery capacity that can expand up to 4,096Wh with the extra battery bundle. It boasts 11 output ports (five ACs, one TT-30R RV port, three USB-Cs, one USB-A, and a car port) through which it can produce up to 2,400W of steady power and surge as high as 4,000W (beating the F2000 by 400W).
You’ll have six main ways to recharge the battery on the new SOLIX C2000 Gen 2, including an AC outlet, a gas generator, solar panels, AC and solar together for its fastest speeds (45 mins to 80%, 58 mins to 100%), your car’s auxiliary port, or by utilizing the brand’s new alternator charger that will launch next month. Some other notable features include its 9W idle power draw, which is quite impressive, as well as the brand’s claim that it can run an 190W refrigerator for up to 32 hours, and more.
Jackery’s latest HomePower 3600 Plus power station and bundles at new lows from $1,519 + FREE gifts
Jackery has changed up its Prime Day Sale into the renamed Fall into Power Sale for the last three days of the event, with continued low prices across many units, as well as two tiers of bonus savings and select free gifts. Among the lineup, you’ll find Jackery’s latest HomePower 3600 Plus Portable Power Station starting from $1,519.05 shipped, after using the code OFFER5 at checkout for an additional 5% savings, and you’ll even be getting a FREE refurbished Explorer 300 Plus power station (valued at $299). Last month, we saw it launch with early-bird savings from its $2,799 MSRP to $1,699, with these Prime Day savings promotions giving folks even greater savings of $1,280 ($1,579 with the free station) that lands it at a new all-time low price, which beats out Amazon’s pricing by $80.
If you want to learn more about this all-new station, as well as its bundle options and the other extra savings promotions, be sure to check out our original coverage of these deals here.
Camplux’s 8-gallon mini under-sink electric water heater back at $208 low, more from $136
Looking in on its official Amazon storefront, Camplux is offering some good savings on under-sink and floor/wall mountable electric water heaters, with the 8-Gallon Mini Electric Water Heater standing atop the hill at $207.99 shipped. Normally $260 at full price, discounts before July regularly brought the costs down to $225, with a fall to $212 in late March. We first saw things drop lower to this rate during July’s Prime Day event, with that deal having repeated a few times in the months since. You’re getting another chance at this all-time low price again today, with $52 cut from the going rate.
If you want to learn more about this under-sink water heater, or its alternate-sized counterparts that are also seeing discounts, be sure to check out our original coverage of these deals here.
BougeRV’s 2-bike carrier for SUVs and trucks boasts a tilting feature and 150-pound payload for a $180 low
Through its official Amazon storefront, BougeRV is offering its Lockable Hitch Mount 2-Bike Carrier for SUVs & Trucks at $179.99 shipped. Normally going for $260 at full price, this bike mount was mostly seen dropping as low as $200 until mid-September, when this lower rate first appeared. Now it’s coming back for a second time, giving you a 31% markdown that saves you $80 from the full rate, landing it back at its all-time lowest price.
If you want to learn more about this handy add-on rack, be sure to check out our original coverage of this deal here.
Best Fall EV deals!
- Velotric Nomad 2X e-bike (camo) with DELTA 3 Plus station: $3,048 (Reg. $3,298)
- Velotric Nomad 2X e-bike (sage or fig) with DELTA 3 Plus station: $2,948 (Reg. $3,298)
- Aventon Ramblas Electric Mountain Bike: $2,599 (Reg. $2,899)
- Ride1Up Prodigy v2 Brose Mid-Drive Gates Belt CVT e-bike: $2,595 (Reg. $2,795)
- Ride1Up Revv 1 DRT Off-Road Moped-Style e-bike: $2,395 (Reg. $2,595)
- Ride1Up Revv 1 Full Suspension Moped-Style e-bike: $2,395 (Reg. $2,595)
- Heybike Hero 750W Mid-Drive Carbon-Fiber All-Terrain e-bike (new low): $2,299 (Reg. $3,099)
- Heybike Hero 1,000W Carbon-Fiber All-Terrain e-bike (new low): $2,099 (Reg. $2,599)
- Velotric Nomad 2 All-Terrain e-bike with $120 bundle (new): $1,999 (No price cut)
- Rad Power Radster Road Commuter e-bike: $1,999 (Reg. $2,199)
- Rad Power Radster Trail Off-Road e-bike: $1,999 (Reg. $2,199)
- Lectric XPedition 2.0 35Ah Cargo e-bike w/ up to $694 bundle: $1,999 (Reg. $2,693)
- Ride1Up Prodigy v2 Brose Mid-Drive 9-Speed e-bike: $1,995 (Reg. $2,495)
- Tenways AGO X All-Terrain e-bike with $307 bundle: $1,899 (Reg. $2,499)
- Lectric ONE Long-Range Belt-Drive e-bike with $220 bundle: $1,899 (Reg. $2,619)
- Velotric Fold 1 Plus e-bike (gray or white) with DELTA 2 station: $1,898 (Reg. $2,198)
- Velotric Fold 1 Plus e-bike (mango or blue) with DELTA 2 station: $1,828 (Reg. $2,198)
- Rad Power RadRunner Plus Cargo Utility e-bike with extra battery: $1,799 (No price cut)
- Aventon Abound SR Smart Cargo e-bike (new, first discount): $1,799 (Reg. $1,899)
- Lectric XP Trike2 750 Long-Range eTrike with $455 preorder bundle: $1,799 (Reg. $2,254)
- Velotric Breeze 1 Cruiser e-bike with $150 bundle (new, first discount): $1,699 (Reg. $1,799)
- Aventon Pace 4 Smart Cruiser e-bike (new, second-ever discount): $1,699 (Reg. $1,799)
- Rad Power RadExpand 5 Plus Folding e-bike (lowest price): $1,699 (Reg. $1,899)
- Lectric XPedition 2.0 26Ah Cargo e-bike w/ $545 bundle: $1,699 (Reg. $2,244)
- Lectric XPeak 2.0 Long-Range Off-Road e-bike with $415 bundle: $1,699 (Reg. $2,114)
- Rad Power RadWagon 4 Cargo e-bike with extra battery: $1,599 (Reg. $1,799)
- Aventon Abound Cargo e-bike: $1,599 (Reg. $1,999)
- Ride1Up VORSA Modular Multi-Use e-bike (first discount): $1,595 (Reg. $1,695)
- Rad Power RadRunner Cargo Utility e-bike with extra battery: $1,499 (No pirce cut)
- Lectric XPeak 2.0 Standard Off-Road e-bike with $247 bundle: $1,499 (Reg. $1,746)
- Lectric XP Trike2 with $257 bundle: $1,499 (Reg. $1,756)
- Rad Power RadWagon 4 Cargo e-bike: $1,499 (Reg. $1,799)
- Tenways CGO600 Pro e-bikes with $118 bundle: $1,499 (Reg. $1,899)
- Velotric Nomad 1 Plus All-Terrain e-bike: $1,499 (Reg. $1,899)
- Aventon Aventure 2 All-Terrain e-bike: $1,499 (Reg. $1,999)
- Aventon Sinch 2 Folding e-bike: $1,399 (Reg. $1,699)
- Lectric XPedition 2.0 13Ah Cargo e-bike with $346 bundle: $1,399 (Reg. $1,745)
- Aventon Level 2 Commuter e-bike: $1,499 (Reg. $1,899)
- Rad Power RadRover 6 Plus Step-Thru Fat Tire e-bike: $1,399 (Reg. $1,599)
- Velotric T1 ST Plus Lightweight e-bike: $1,399 (Reg. $1,649)
- Heybike ALPHA All-Terrain e-bike (new low): $1,399 (Reg. $1,699)
- Ride1Up Roadster V3 Lightweight Premium e-bike: $1,395 (Reg. $1,495)
- Hiboy TITAN Pro Electric Scooter (new model, code HSTP10): $1,350 (Reg. $2,000)
- Lectric XPress 750 Commuter e-bikes with $415 bundle: $1,299 (Reg. $1,714)
- Lectric XP4 750 LR Folding Utility e-bikes with $394 bundle: $1,299 (Reg. $1,693)
- Heybike Hauler Dual-Battery Cargo e-bike (new low): $1,299 (Reg. $1,899)
- Heybike Horizon Full-Suspension e-bike (second-ever low): $1,299 (Reg. $1,999)
- Heybike Mars 2.0 Folding Fat-Tire e-bike with extra battery: $1,199 (Reg. $1,848)
- Lectric XP Lite 2.0 JW Black LR e-bike with $439 bundle: $1,099 (Reg. $1,538)
- Ride1Up Portola Folding e-bike: $1,095 (Reg. $1,095)
- Hiboy TITAN Electric Scooter (new model, code HST9): $1,001 (Reg. $1,700)
- Lectric XP4 Standard Folding Utility e-bikes with $79 bundle: $999 (Reg. $1,078)
- Lectric XP Lite 2.0 Long-Range e-bikes with $439 bundles: $999 (Reg. $1,438)
- Heybike Hauler Single-Battery Cargo e-bike (new low): $899 (Reg. $1,499)
- Segway E3 Pro Electric Scooter: $600 (Reg. $700)
Best new Green Deals landing this week
The savings this week are also continuing to a collection of other markdowns. To the same tune as the offers above, these all help you take a more energy-conscious approach to your routine. Winter means you can lock in even better off-season price cuts on electric tools for the lawn while saving on EVs and tons of other gear.
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Environment
Thousands of Tesla owners join class action lawsuit over ‘Full Self-Driving’ in Australia
Thousands of Tesla owners have reportedly joined a class action lawsuit against the automaker in Australia over false claims about its ‘Full Self-Driving’ (FSD) package.
Tesla is facing mounting legal pressure over its advanced driver assistance (ADAS) features: Autopilot and Full Self-Driving.
The company has been embroiled in lawsuits related to crashes involving its ADAS features, including losing its first trial and settling several other similar lawsuits.
Furthermore, Tesla has been facing several class-action lawsuits and regulatory scrutiny over allegations of misrepresenting its features.
These have been mounting since CEO Elon Musk admitted that its Hardware 3 self-driving computer (HW3) will not be capable of unsupervised self-driving.
In 2016, Tesla claimed that all vehicles produced from this point forward would have “all the hardware for full self-driving” and the company described full self-driving as level 4-5 fully autonomous driving.
Musk initially claimed that Tesla would retrofit vehicles with new hardware capable of full self-driving, but it has been 10 months, and there’s been no word about an upgrade or even a significant software update for HW3 owners.
This situation has led to several class action lawsuits. A judge recently shut down Tesla’s attempt to block a HW3 class action in the US.
Last month, a similar lawsuit was launched against Tesla in China.
In February, shortly after Musk admitted that HW3 won’t support autonomous driving, a class action was launched in Australia related to the matter and other allegations of problems with Tesla’s ADAS features not delivering the promised capabilities.
Now, Rebecca Jancauskas, a director at the firm leading the class action, told News Corp Australia “thousands of Australians” have joined the lawsuit.
She said:
“Tesla made promises about their vehicles’ safety, performance and features such as their ‘Full Self-Driving,’ but we have found a lot of these promises are falling flat.”
The lawsuit seeks “a financial settlement that adequately compensates Australian consumers for what they thought they were getting, but haven’t, in fact, received”.
Unlike Musk’s claim that only Tesla owners who bought the FSD package would get an upgrade, the class action in Australia covers Tesla Model 3 and Model Y owners who purchased or leased their vehicles between May 2021 and February 2025.
Electrek’s Take
The sharks are circling. Lawyers are all over this because, at least in my opinion, it is a fairly straightforward case.
Tesla claimed vehicles had capabilities that it didn’t have. Period.
It is dragging its feet to make things right, and I have no hope that it will unless forced to.
It also affects not only people who bought FSD. Tesla claimed that all cars were equipped with the hardware capable of full self-driving.
Even if the software package had not been purchased, it would affect the value and, therefore, all owners.
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Lucid Motors (LCID) took a jab at Tesla (TSLA), asking Elon Musk’s own AI to confirm which brand really has the best luxury EV.
Lucid or Tesla: Which has the best luxury EV?
Although Lucid has insisted for years that Tesla is not its main competition, the two still compete for buyers and are often pitted against one another in the luxury market.
Like former CEO Peter Rawlinson, Lucid’s interim chief, Marc Winterhoff, has said multiple times this year that the company is seeing an influx of buyers flocking from the Tesla brand.
In an interview in late September, Winterhoff told the Financial Times that the company is now seeing Tesla customers trade in their vehicles for the Lucid Air and new Gravity SUV. Lucid’s interim CEO said, “We have seen an uptick, that’s definitely the case, in Europe and also here in the US. The Model S, nothing has changed in 12 years now.” Winterhoff added that buyers are “actively looking for other options.”
Is Lucid the best option? According to Grok, Elon Musk’s own AI, Lucid does have the best luxury electric vehicle. Lucid posted a video on social media asking Grok, ChatGPT, and Copilot, “What’s the best luxury EV?”
All of them agreed: the 2025 Lucid Air is considered the best luxury EV option. Musk’s Grok said: “The 2025 Lucid Air emerges as the overall leader. It excels in efficiency and acceleration, with a serene, high-end cabin.”
Even AI agrees, but does that make it true? The 2025 Lucid Air Pure is the world’s most efficient car with an EPA-estimated 5 miles per kilowatt-hour (kWh).
Lucid’s vehicles also feature a curved 34″ Glass Cockpit display, while Tesla offers a 17″ infotainment for the Model S and X. The Model 3 and Model Y feature a 15.4″ display, with the newer models gaining an 8″ rear display. Most Lucid vehicles also include a 12.5″ Pilot Panel climate control touchscreen.
Electrek’s Take
Tesla had the first mover advantage, but others, like Lucid, are closing the gap, offering more advanced tech, features, and better performance.
The Lucid Air surpassed the Tesla Model Y to become the best-selling luxury electric sedan in the US this year. With Gravity production now ramping up, Lucid expects the SUV to account for the majority of output and sales in the second half of the year.
After launching the Gravity in Europe last month, Lucid delivered the first models in Canada on October 11 as it expands beyond the US.
What do you think? Is the Lucid Air the best luxury EV? Drop us a comment below and let us know what luxury model you’d choose.
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