International resistance against Tesla's outdated hardware continues to intensify.
Nine years ago, Tom Losavio spent over $100,000 on a Tesla Model S, which included an $8,000 payment for the Full Self-Driving (FSD) software package.
Retired lawyer Tom Losavio is the lead plaintiff in a class-action lawsuit alleging that Tesla misled consumers regarding the capabilities of its Full Self-Driving (assisted driving) product.
When Tom Losavio purchased his Tesla Model S in 2017, he believed he was buying a vehicle that would eventually achieve full autonomous driving.
The self-described early adopter paid over $100,000 for the luxury sedan, with $8,000 allocated for lifetime access to the automaker's most advanced driver-assistance features. Tesla CEO Elon Musk had stated that the hardware installed in Tesla vehicles would ultimately enable full self-driving capability across the entire fleet.
"My wife and I talked about how great it would be to just get in the car and have it take us wherever we wanted to go," Losavio said.
Nine years later, Losavio asserts the reality is clear: Tesla deceived him. As the lead plaintiff, he is spearheading a class-action lawsuit accusing Tesla of charging consumers thousands of dollars for upgrades to a product that did not exist in the past and remains unfulfilled today.
Losavio alleges that Musk and Tesla repeatedly made false statements about the vehicles' self-driving capabilities, misleading consumers who paid extra based on the marketing claims. This lawsuit is part of a broader wave of action from Tesla owners demanding accountability for the automaker's overpromising and underdelivering on its Full Self-Driving (assisted driving) product.
In the Netherlands, a Tesla owner initiated a campaign last week to unite European owners for collective action; some paid thousands for the autonomous technology but cannot use it due to local regulatory restrictions. A law firm in Australia has also launched a class-action suit, alleging Tesla misled consumers about the cars' self-driving abilities.
These developments cast doubt on Musk's decade-long marketing campaign promising that self-driving Teslas are imminent. Even as Tesla's market share in the electric vehicle sector shrinks, this promise has helped maintain its stock price near historic highs, giving it a market valuation exceeding that of most other major carmakers combined.
Tesla and its lawyers have not responded to requests for comment.
The issue of the outdated hardware, known as Hardware 3, has gained traction online, with owners voicing their frustrations on platforms like Reddit and Facebook, accusing Tesla of inaction. Investors also frequently question Tesla executives about the matter during quarterly earnings calls.
While the lawsuits and the European campaign involve thousands of Tesla owners, Wall Street analysts estimate that millions of Tesla vehicles on the road globally are equipped with obsolete hardware incapable of running the most advanced version of Tesla's Full Self-Driving (assisted driving) software.
Despite the challenges, Tesla appears closer than ever to its goal in some respects. The company's new robotaxi ride-hailing service is offering limited driverless rides in Austin, Texas. Tesla claims it will expand to more cities in the coming months. The company also announced plans to produce a two-seat coupe called the Cybercab, which Musk says will be built without a steering wheel or pedals.
However, for owners like Losavio, it remains unclear when or how Tesla will fulfill its most ambitious promise: that the vast majority of Teslas already on the road will eventually become fully self-driving.
"You always hope you're not a fool," Losavio said.
Full Self-Driving, Eventually?
Tom Losavio is the lead plaintiff in the class-action lawsuit against Tesla.
The 80-year-old, who lives in an affluent suburb on the San Francisco Peninsula, is seeking refunds for himself and other owners who purchased or leased new Teslas between 2016 and 2024, paid extra for enhanced features, and expected the vehicles to eventually drive themselves. The lawsuit also seeks to bar Tesla from marketing its products with the "Full Self-Driving" label.
In September of last year, Losavio's lawsuit was certified as a class action, encompassing approximately 3,000 owners in California. This number does not include the many owners who signed arbitration agreements with Tesla and are unable to join the lawsuit.
Tesla is currently appealing the class certification. A judge in the U.S. Ninth Circuit Court of Appeals will ultimately decide whether Losavio can represent the class as currently defined, if the class needs modification, or if he must proceed with an individual lawsuit.
At the heart of the litigation is the hardware system in Tesla vehicles, designed to perform driving operations like steering, braking, and accelerating under close human supervision, alongside the marketing claims Tesla has made about these capabilities over the years.
Tesla vehicles use cameras, an onboard computer, and in earlier models, ultrasonic sensors and radar, to enable these assisted driving functions. Tesla's most advanced driver-assistance feature is currently marketed as "Full Self-Driving (Beta)," available for a $99 monthly subscription. This system can handle most roadway driving, lane changes, and parking maneuvers, but requires the driver to constantly monitor the road, keep their eyes on the path ahead, and periodically touch the steering wheel.
Tesla began installing early versions of this technology in its vehicles in 2014. By 2015, Musk publicly claimed that Tesla cars would achieve full autonomy within two years.
In 2016, Tesla announced that all new cars produced thereafter would include the necessary hardware for full self-driving capability. Musk told media outlets that a Tesla would complete a fully autonomous cross-country drive from Los Angeles to New York by the end of 2017.
"I feel pretty good about this goal," he said. "We'll be able to do a demonstration drive of full autonomy all the way from LA to New York."
This prediction did not materialize. Ultimately, Tesla's technical solution required more advanced computers and cameras than those in Losavio's vehicle. Between 2020 and 2021, Tesla began offering upgrades to a third-generation onboard computer and camera suite. Owners like Losavio, who had prepaid for lifetime access, were eligible for a free upgrade from Tesla; other owners subscribing to FSD on a monthly basis could pay $1,000 for the upgrade.
In 2023, Tesla introduced its fourth hardware iteration, with new models receiving the latest chips. This rendered the hardware in vehicles owned by Losavio and others—who had only upgraded to the third-generation computer a few years prior—obsolete once again.
Tesla provided Tom Losavio's vehicle with a free upgrade for the computer and cameras, but his equipment soon became outdated again.
"I Believed They Would Deliver"
Tesla is also facing a similar class-action lawsuit in the Federal Court of Australia. According to the involved law firm's website, the suit alleges Tesla marketed and sold defective vehicles "incapable of supporting Full Self-Driving or even near-full self-driving functionality."
Last week, following the initial approval of Tesla's Full Self-Driving system for use in the Netherlands, a Dutch Tesla owner named Misha Siggerman announced a campaign to unite European owners for legal action against the automaker.
Siggerman, a product lead at a Dutch venture studio, purchased a Model 3 Performance in 2019 for €68,000, plus an additional €6,400 for the Full Self-Driving upgrade. He stated he still cannot use the system in his car because Dutch regulators have only approved the version of FSD that runs on Tesla's latest hardware.
"Why did I buy it? Because I believed they would deliver," Siggerman said. "I just didn't think it would take seven years, and they still haven't managed it."
Since Musk stated in a January 2025 investor meeting that Tesla would upgrade the computers for owners who purchased the lifetime FSD package, the company has not taken any further action on the matter.
"It's true, this is going to be tricky and difficult, but we'll get it done," Musk said on the earnings call. "Frankly, I'm glad that not that many people bought the lifetime Full Self-Driving package."
The issue was raised again during the earnings call last October. Tesla executives indicated they wanted to complete the development of a software version that does not require human monitoring before upgrading hardware for older vehicles. Executives also discussed potentially releasing different software versions compatible with older hardware.
Earlier that month, Tesla released the first major update to its Full Self-Driving system in a year. Musk had teased that more updates would follow soon, suggesting that "your car will feel like it has a mind of its own." However, this update was only compatible with vehicles equipped with the latest hardware, leaving some U.S. owners with older systems unable to use it.
Musk has since begun touting the potential capabilities of the next generation of hardware.
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