Tesla owner wins ~$10k settlement over Tesla’s full self-driving claims
A Tesla owner in the UK challenged Tesla over its failure to deliver on its full self-driving claims and won a settlement representing a refund of his purchase cost of FSD, with interest, after filing a claim in small claims court.
Tesla’s Full Self-Driving system has been available since 2016, with Tesla stating at the time that all Teslas now have the hardware to fully drive themselves. The system went on sale that year as a $3,000 option, though prices have shifted up and down over time.
But the software… still doesn’t work. While Tesla finally released FSD beta to everyone in the US last year (after gating it behind a “safety score” for about a year), Teslas are still not actually capable of fully driving themselves.
Tesla’s system is still “level 2” on the SAE’s driving automation scale, which means responsibility lies with the driver. Drivers need to pay attention to the vehicle, and should, since FSD can make some pretty dangerous decisions.
The system has raised eyebrows with regulators, lawsuits, and political campaigns all claiming that Tesla advertises the system falsely by calling it full self-driving when it is not.
FSD Beta does deliver on some specific promises that Tesla made – namely, traffic light recognition and automatic driving on city streets. While the latter is not available unsupervised, it has been rolled out to customers – in North America, anyway. FSD Beta has only started being available in a few other territories outside North America earlier this year.
But the UK is not one of those places, and 2023 is not 2019. Which is the source of the claim we’ll be discussing today.
The claim was filed by Tesla owner Edward Butler, who detailed the process in a thread on Tesla Motors Club forum.
Butler purchased a Tesla Model 3 in 2019, along with the Full Self-Driving option at a price of £5800 (about $7,100 USD at today’s rates). He alleged that Tesla has not delivered on specific promises related to its Full Self-Driving option, and thus breached the Consumer Rights Act of 2015. His claim asked for a refund of the price of the system, with interest, and a rollback to eliminate FSD functionality for his vehicle.
Specifically, he cited Tesla’s website which in 2019 stated that traffic light recognition and automatic driving on city streets were “coming later this year.” Since Butler purchased the vehicle entirely from the website and without a test drive, the website description formed part of the purchase contract.
Since then, Tesla has delivered traffic light recognition in the UK, though that feature rolled out in September 2020, after Tesla’s self-imposed deadline. And Tesla has still not yet delivered automatic driving on city streets in the UK, nearly four years later.
Butler notified Tesla of his intent to file, and initially the company denied the claim. Then he filed with the UK courts’ Money Claim Online website, and his case was assigned to his local small claims court.
Once a court date was set, Tesla offered Butler a settlement offer – but initially, that settlement only included a refund of the initial price of the system, with no interest. And worse, for Butler, Tesla added clauses that would restrict him from talking about the settlement or providing anyone else instructions on how to pursue a similar claim.
Butler objected to these restrictions, and told Tesla that he would not accept any claims with these clauses included. After some further back and forth and telling Tesla that he would continue to pursue the court date, Tesla seemingly recognized that his claim was a “slam-dunk,” in Butler’s words, and agreed to the higher amount without the gag clauses included.
Butler says:
From Telsa’s POV, I am the worst type of litigator to take on. I am not a lawyer, but deal with them quite often in my day job so I know enough to put in a small claims action with confidence. The money wasn’t important to me, I felt they’d conned me and I wanted them to do the right thing and put it right. Moreover, because the money wasn’t important to me I was never going to sign up to a non-advice/confidentiality clause, I think it’s important that my experience is out there for others to form their own views from.
The settlement ended up being for £8,015.22, including interest and court fees, which is $9,860USD at today’s exchange rates. As a settlement, this does not set any legal precedents, but it does show that there is a strong case against Tesla, at least in the UK, over violation of UK law in its advertising claims.
Electrek’s Take
This isn’t the first time Tesla has been lost in court over false advertising relating to its self-driving system. Last year, it was ordered to upgrade one driver’s self-driving computer for free after announcing that it would charge owners $1,500 for hardware they already bought.
But small claims is not the most efficient way to hold companies accountable when they make false promises. While it is much cheaper and easier than a traditional lawsuit, because neither side is allowed to bring lawyers and the court filing system is streamlined in comparison, it’s still a roadblock and still requires fees.
It also requires knowledge of the system, which is why Tesla wanted to add a “non-advice” clause to Butler’s settlement. By tamping down on public knowledge of how to file these claims, Tesla can hopefully settle them one by one and not have to pay restitute across its entire customer base, at least 285,000 of which have paid for FSD.
This is why class actions are good at holding companies accountable, because they can combine several claims together. Otherwise, a company isn’t going to care about losing a few thousand dollars here and there – they’ll offer quick settlements and get on with their day.
It’s also why companies prefer binding arbitration clauses, which deprive workers and consumers of their legal right to seek remedy through the legal system or through class action lawsuits. But forced arbitration has been upheld repeatedly by the consumer-hostile “supreme” court of the US, more than half of whom were appointed or confirmed undemocratically, so it stands to reason that they wouldn’t care about what would benefit the public most.
This is relevant because Tesla recently weaseled out of one of these class action lawsuits by claiming successfully in court that all owners must go through arbitration if they want to receive remedy. The court even boneheadedly ruled that one owner who did not accept the arbitration clause was not allowed to sue because they waited too long to do so, even though Tesla’s violation is happening on a continuing basis.
And none of this is great for customer or public perception of Tesla. While they may be profiting off of sales of future software, they could do a lot better for goodwill by offering customers who feel jilted to refund a system which they’ve never been able to use – and may never be able to use over the course of the entire lifetime of the vehicle, given that some have now had FSD functionality for 6 years without it actually being usable yet.
For now, the steps above may not apply to the US the same as they apply to the UK. But if you’re in the UK and want your money back for a non-working Full Self-Driving system, it sounds like the process is relatively simple. Head on over to the Tesla Motors Club forum thread to learn more and see a selection of documents that Butler filed. And if anyone tries the same in the US (or if you have tried it and succeeded in the past), we’d love to hear about it.
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That $20,000 luxury Lucid EV you’ve been waiting for will likely never hit the market. CEO Peter Rawlinson said Lucid (LCID) has no plans to launch a $20K vehicle. However, it could play a role in bringing cheaper EVs to market.
After its third straight quarter of record deliveries in Q3, Lucid is gaining traction. The EV maker is now outselling its German luxury rivals in the US, including the Porsche Taycan and Mercedes EQS.
Lucid’s Air even outsold the Tesla Model S in the third quarter. According to Kelley Blue Book, Lucid sold 1,944 Air models in Q3, up 33% from last year, while Tesla Model S sales slipped 47% to 1,669.
The company’s growing sales come despite many media headlines claiming that EV sales are slowing or cooling.
On The Wall Street Journal’s recent Bold Names podcast, Rawlinson said there is a “false narrative” that EVs are in decline. Sales are still up, Rawlinson explained, but they may not be climbing as fast as some had predicted.
Lucid’s CEO is not surprised by some legacy automakers’ “lame efforts.” According to Rawlinson, the company was established for a different reason. Lucid exists “to advance the state of the art of EVs,” the company’s CEO said on the podcast.
Is Lucid launching a $20K EV?
In 2021, Lucid launched the first EV with over 500 miles range. To this day, “There’s no competitor within 100 miles of that car,” according to Rawlinson.
Lucid is focused on efficiency or enabling more range with fewer batteries. To promote widespread adoption, Rawlinson said we must hit the core issue: the cost of batteries as a function of their size.
To get there, Lucid had to start with a high-end premium product, its luxury Air sedan. The company’s leader said Lucid exists to advance “the state of the electric car” with its advanced tech. In other words, it is about driving down costs while unlocking more driving range with smaller, more efficient technology.
So does this mean we will eventually see a $20,000 Lucid EV hit the market? It’s still not likely. According to Rawlinson, Lucid has no plans to build a $20K EV because “that market sucks.”
Lucid’s CEO pointed to Porsche, one of the most profitable legacy automakers, saying, “It doesn’t operate in that sphere.”
Meanwhile, Rawlinson explained that Lucid is “commercially viable in the future.” He believes that is where Lucid could have an opportunity to license its tech.
Enabling cheaper EVs
Regarding a $20K or $25K EV, the company’s advanced tech will “enable that tomorrow,” Rawlinson said, but it will not be a Lucid vehicle. When asked, “Are you going to build that $20,000 vehicle?” Lucid’s CEO responded, “No, because that market sucks.”
The mass market segment has “terrible low margins,” and that’s not where the company is trying to compete.
Rawlinson said other OEMs already have the manufacturing network and could put such a vehicle in place.
The premium EV maker plans to launch several lower-cost vehicles on its upcoming midsize platform, but they will still be around $50,000. Lucid’s midsize SUV, which is due out in 2026, will be “priced around 48 to $50,000,” Rawlinson confirmed.
That’s the price range Lucid wants to do business in, but licensing its tech will enable others to make more affordable products.
Rawlinson said when the new midsize model model launches, “we become a Tesla competitor, head-to-head.” Lucid’s CEO said he believes the upcoming EV will be “massively better than a Tesla Model Y.” He added:
Because of our technological advantage, we should be able to make that car with its competitive range, but with less batteries than anyone else.
According to Rawlinson, doing so will not only save resources but also “allow a better gross margin per vehicle than anyone else.”
That is the game plan, the “chess game” Lucid is playing. Although the media portrays Lucid as a Tesla competitor now, the company is actually targeting Mercedes and Porsche. In a few years, it will challenge Tesla head-to-head with its midsize SUV.
Before that, Lucid is launching its first electric SUV, the Gravity. It has already begun taking orders for the higher-end $94,000 model, which is scheduled to enter production later this year. A more affordable $80,000 version is planned for late 2025.
After securing another $1.75 billion through a recent capital raise, Lucid said it has enough funding for “well into 2026,” right in time for the midsize model.
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Eco Wave Power (Nasdaq: WAVE) has secured the final permit from the US Army Corps of Engineers to install its first onshore wave energy system in the US at AltaSea’s site in the Port of Los Angeles. This pilot project will be the first of its kind in the US.
The permit, issued under Nationwide Permit 52 for water-based renewable energy generation pilot projects, allows Eco Wave Power to install eight wave energy floaters on the existing concrete wharf at Municipal Pier One. The setup will include an energy conversion unit housed in two 20-foot shipping containers, which are already on-site and ready to go. Eco Wave Power plans to complete the US’s first onshore wave energy installation by the end of Q1 2025.
Eco Wave Power’s floaters – the blue dinghy-like things in the water in the photo above, which are in Gibraltar – convert the rising and falling motion of the waves into energy generation.
The movement of the floaters compresses and decompresses the connected hydraulic pistons that transmit biodegradable hydraulic fluid into accumulators on land, where pressure builds. The pressure rotates a hydraulic motor, which rotates the generator, and then electricity is transferred into the grid via an inverter. After decompression, the fluid flows back into the hydraulic fluid tank, where it’s then reused by the pistons, creating a closed circular system.
The whole wave-energy power station is controlled and monitored by a smart automation system.
Eco Wave Power partnered with Shell in April 2024 on the Port of Los Angeles wave energy pilot in April 2024, and the two companies will work together on the execution phase of the project now that the permit is in place.
Inna Braverman, CEO of Eco Wave Power, said, “We are thrilled to receive this final permit and move one step closer to bringing wave energy to the US. This project represents not only a technological breakthrough but also a crucial step in advancing the global transition to renewable energy.”
Eco Wave Power operates the first grid-connected wave energy system in Israel and is also preparing to install projects in Taiwan and Portugal.
Wave energy holds massive potential. The US Department of Energy’s National Renewable Energy Laboratory estimates that wave energy could potentially generate enough energy to power hundreds of millions of homes. Eco Wave Power’s aim is for its Port of Los Angeles pilot project to advance wave energy as a potential reliable and mainstream renewable power source.
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Damon Motorcycles, the startup that in 2019 unveiled a flashy electric motorcycle intended to best its combustion engine-powered competition, has announced that it has gone public and will assemble its first production-intent motorcycles next year.
The company’s announcement today claims that it has gone public on the Nasdaq and touts its US $100M in “deposit backed reservations”. The deposit amounts vary, but for the brand’s flagship US $40,000 Damon HyperFighter Colossus, the US $250 fully-refundable deposit would imply somewhere around 2,500 to 3,000 reservations.
However, those reservations have been rolling in for quite some time and many were likely based on the brand’s earlier announcements and unveilings – several of which trickled out between 2019 and 2022.
But the company’s founder and CEO Jay Giraud says riders should still expect Damon to make good on its promises of a 200 mile, 200 mph, and 200 hp (320 km, 320 km/h, 150 kW) electric motorcycle coming next year.
“Our vision is resonating with a global community that’s ready for a more modern riding experience – what the old guard keeps selling year after year has gotten stale,” explained Giraud. “And reaching $100M in reservations is a pretty good indication that it’s time to think different.”
For years now we’ve heard that Damon’s upcoming electric motorcycles won’t only be powerful sport bikes, but will also be brimming with new technology and advanced features never before seen in motorcycling.
That technology suite includes a feature that Damon first touted in January of 2020 known as CoPilo, an AI-enhanced 360º collision warning system, as well as Shift™, electronically adaptive ergonomics that transform the riding position from sport to commuter on the fly.
While a shapeshifting motorcycle with 360 degree AI-enhanced vision sounded like science fiction when the company was launched in 2019, we’ve since seen affordable commuter e-motos like Ryvid rollout frame-shifting tech that lets owners adjust the bike’s geometry while actively riding, and startups like RiderDome are already providing 360-degree AI-enhance motorcycle sensor systems.
Damon Motorcycles could still reach uncharted territory if the company can produce a 200 mph and 200 hp electric motorcycle with its claimed 200 miles of highway range, but that still sounds like a big “if.”
For now, the most up-to-date goalpost location appears to now be 2025, though the company is only claiming to be preparing “for assembly of a fleet of production intent vehicles in 2025.” It remains to be seen when true production will begin and that supposed US $100M sitting out there can be converted into bikes
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