Tesla Faces 8.8 Billion Won Lawsuit in China Over FSD Advertising

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By Kim Do-yeon
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A driver operates a vehicle using Tesla's Full Self-Driving (FSD) feature. Source: Social media - Seoul Economic Daily Culture News from South Korea
A driver operates a vehicle using Tesla's Full Self-Driving (FSD) feature. Source: Social media

Tesla owners in China have filed a class-action lawsuit against the U.S. automaker, alleging that its Full Self Driving (FSD) feature constitutes false advertising.

The Beijing Daxing District People's Court recently held the first trial in the consumer class action over Tesla's FSD feature, Chinese media outlet The Beijing News reported on December 31. The lawsuit was jointly filed by 10 Tesla owners in China.

The plaintiffs argued that Tesla promoted its vehicles as if they were equipped with full self-driving capabilities, but the system has not received approval from Chinese regulators and key functions have not been implemented. The consumers claimed that such conduct constitutes false advertising and consumer deception, seeking a total of 3.95 million yuan (approximately 880 million won) in damages.

They also argued that Tesla induced consumers to make purchases without sufficiently explaining the limitations of the technology, amounting to fraudulent sales practices.

The plaintiffs' attorney explained that the core issue of the lawsuit is whether the FSD capabilities Tesla advertised match the functions actually provided to consumers.

Tesla countered in court that FSD features have already been implemented or are partially implemented, while the remaining functions are under continuous development, according to the report.

Earlier, Tesla announced on December 21 via X, formerly Twitter, that Supervised FSD is being offered in China as well as the United States, Canada, Mexico, Australia, New Zealand, South Korea, the Netherlands and Lithuania.

However, Supervised FSD is a driver-assistance system rather than fully autonomous driving. While the vehicle can perform various driving tasks, the driver must constantly monitor the driving situation. Drivers must also intervene immediately when necessary. In the event of an accident, legal responsibility rests with the driver.

In the Chinese market, Tesla currently offers services centered on Basic Autopilot and Enhanced Autopilot. Basic Autopilot supports adaptive cruise control and lane-keeping functions, while Enhanced Autopilot additionally provides automatic lane changes and automatic parking features.

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Original reporting by Kim Do-yeon for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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