Tesla reimbursed Full Self-Driving in arbitration for failing to deliver

10 months ago

Tesla forced to reimburse Full Self-Driving (FSD) package after failing to deliver on promises.
Tesla claimed since 2016 that all vehicles had hardware capable of unsupervised self-driving, but this was proven false.
FSD package sold for $8,000-$15,000, yet requires driver supervision, contrary to Tesla's marketing.
Hardware upgrades (HW3) still insufficient; Tesla now aims for unsupervised self-driving on HW4 vehicles.
Significant doubts remain due to high critical disengagement rates (500 miles between incidents).
Tesla faces liability for retrofitting millions of vehicles and potential customer refunds.
Customer Marc Dobin won arbitration, forcing Tesla to refund $10,000 plus $8,000 in arbitration fees.
Arbitrator ruled Tesla's FSD was non-functional and lacked proper disclosure (e.g., safety score system).
Tesla's arbitration clause blocks class actions, complicating refund requests for other customers.
Case may set a precedent for similar refund claims, but cost and effort deter most customers.

Hasty Briefsbeta