A U.S. judge on Wednesday rejected Tesla’s bid to dismiss a lawsuit accusing Elon Musk’s electric car company of misleading owners into believing that their vehicles could soon have self-driving capabilities.
The proposed nationwide class action accused Tesla and Musk of having since 2016 falsely advertised Autopilot and other self-driving technology as functional or “just around the corner,” inducing drivers to pay more for their vehicles.
U.S. District Judge Rita Lin in San Francisco said owners could pursue negligence and fraud-based claims, to the extent they relied on Tesla’s representations regarding vehicles’ hardware and ability to drive coast-to-coast across the U.S.
Without ruling on the merits, Lin said that “if Tesla meant to convey that its hardware was sufficient to reach high or full automation, the plainly alleges sufficient falsity.”
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