Tesla Facing China Lawsuit Over FSD Feature

Tesla Inc. is facing a consumer lawsuit in China over its Full Self‑Driving feature, with a Beijing court holding its first hearing in a case brought by 10 car owners alleging misleading advertising and fraud, The Beijing News reported.

Ten plaintiffs are seeking more than 3.95 million yuan ($583,000) in damages, the report said, citing their lawyer.

The dispute centers around whether Tesla’s FSD system meets claims of “full self‑driving capability.” Plaintiffs argue the feature has not been approved by Chinese regulators and cannot deliver on advertised functions, alleging the company concealed hardware defects to induce purchases, the report said.

Tesla disputed the claims in court, saying some of the features of the technology are fully functional while others are partially functional, with additional functions still under development. Tesla said it had no official update, the report said.

The case adds to broader scrutiny of Tesla’s Full Self‑Driving and the probe into potential flaws in the technology’s ability to handle driving conditions with reduced visibility.

Top photo: Tesla Model Y on a production line at the company’s Gigafactory plant in Shanghai. Photographer: Qilai Shen/Bloomberg.