Tesla has secured a legal victory in California after a federal appeals court overturned class certification in a lawsuit accusing the automaker of misleading customers about the hardware needed for Full Self-Driving (FSD).
In an October 16 ruling, the U.S. Court of Appeals for the Ninth Circuit found that a lower court had improperly assumed Tesla buyers were exposed to the company’s allegedly misleading advertising. The decision vacates the certification of three classes, but does not dismiss the lawsuit itself.
The case, LoSavio v. Tesla, dates back to 2022 and centres on Tesla’s claims about the self-driving capabilities of its vehicles. According to Insurance Journal, the disputed advertising claimed vehicles sold from October 2016 onward contained the hardware necessary for full self-driving capability.
The lawsuit is separate from a newer HW3 class action filed in June 2026, which also challenges Tesla’s promises about FSD compatibility.
In its latest decision, the appeals court determined that visiting Tesla’s website did not necessarily mean customers had viewed the specific hardware statement.
The judges pointed out that buyers were not required to visit Tesla’s Autopilot webpage before purchasing FSD. Website traffic data and other advertising statements were also insufficient to establish exposure across the entire class.
The court additionally found that determining when individual customers encountered Tesla’s claims complicated the statute of limitations analysis.
As a result, the court vacated certification of two damages classes and a third class seeking injunctive relief.
Tesla has denied the allegations. The appeals court did not determine whether Tesla’s advertising was misleading.
The case now returns to the district court for further proceedings, leaving the underlying claims unresolved.
Related Articles:
- Tesla’s HW3 Problem Becomes Key Argument in New FSD Lawsuit
- Chinese Tesla Owners Sue Over FSD Promises and HW3 Limitations
- Tesla FSD Lawsuit in Australia Grows as Thousands Join Class Action
- Tesla Takes California DMV to Court to Overturn ‘False Advertising’ Ruling
Always get the latest - make Drive Tesla your preferred source on Google
Are you buying a Tesla? If you enjoy our content and we helped in your decision, use our referral link to get three months of Full Self-Driving (FSD).Drive Tesla uses affiliate links, which means we may earn a commission if you make a purchase through them, at no additional cost to you. Thank you for your support.
