When Tom LoSavio bought hisTesla Model S in 2017, he thought he was buying a car that would one day drive itself. LoSavio paid more than
$100,000 for the luxury sedan, including $8,000 for lifetime access to
its most advanced driver-assistance features. Tesla Chief Executive Elon Musk said that the hardware in the company’s cars would eventually allow all of its cars to drive themselves. “My
wife and I talked about what a great thing it would be if we could just
get in a car and have it drive us places,” LoSavio told The Wall Street
Journal.
In
the nine years since, LoSavio said it has become clear that Tesla took
him for a ride. He is the lead plaintiff in a class-action lawsuit that
alleges that Tesla charged customers thousands of dollars in pricey
upgrades for a product that didn’t, and still doesn’t, exist. LoSavio
alleges that Musk and Tesla have made repeated claims that were false
about the self-driving capabilities of these vehicles and misled
consumers who paid extra because they believed the company’s marketing.
His lawsuit is one of several ongoing efforts by Tesla owners looking to
hold the company accountable for overpromising and under-delivering on
its Full Self-Driving (FSD) product.
Tesla is facing mounting legal issues in Netherland and Australia, over charges that the company misled customers about the cars’ capabilities. The
matter calls into question Musk’s decade-long marketing pitch that
Tesla’s autonomous vehicles were just around the corner. That promise
kept Tesla’s stock near all-time highs—and with a market cap that
exceeds most other automakers combined—even as its share of the
electric-vehicle market has eroded.
The lawsuits and European campaign represent just thousands of Tesla
customers. Wall Street analysts, however, estimate that there are
millions of Teslas on the road with the outdated hardware no longer
capable of running the most sophisticated version of Tesla’s Full
Self-Driving (Supervised) software. LoSavio won class-action status for his lawsuit in September. The class
represents approximately 3,000 people in California, a figure that
excludes the many Tesla owners who have signed arbitration agreements
with the company that prevent them from suing.
Tesla started including early versions of its self-driving tech in its vehicles in 2014. By 2015, Musk was publicly claiming that Tesla vehicles could drive themselves entirely within two years. Then
in 2016, Tesla announced that all new cars built from then on had the
hardware required for full self-driving. Musk told the press that a
Tesla would drive itself from Los Angeles to New York City by the end of 2017.
But it was all bullshit. Eventually
Tesla’s plans required a more sophisticated computer and cameras than
were installed in LoSavio’s car. In 2020 and 2021, it started offering
customers upgrades to the third edition of its computer and camera set.
Some customers like LoSavio, who paid upfront for lifetime access, got
complimentary upgrades from Tesla. Others who wanted to use the FSD/self-driving technology but paid
monthly could pay $1,000 for the upgrade.
Then
in 2023, Tesla upgraded its hardware for the fourth time and started
selling new cars with its latest chip. That meant that customers like
LoSavio, who got updated to the third-edition computer a few years
prior, once again had outdated equipment. The company hasn’t made any moves since January 2025, when Musk told
investors that the company would have to do yet another computer upgrade for
customers who bought the lifetime FSD (Full Self-Driving) package.