A South Korean court has rejected a lawsuit by 88 Tesla owners seeking full refunds for the company’s Full Self-Driving (FSD) software, ruling that the automaker did not breach its contractual obligations by failing to deliver fully autonomous driving capabilities.
The Seoul Central District Court ruled on Thursday that the plaintiffs had misunderstood the scope of the FSD package, which does not promise a vehicle capable of driving entirely without human intervention.
The owners filed the lawsuit in 2024, arguing that Tesla Korea had failed to deliver the promised FSD system despite selling the option in South Korea since around March 2017.
They said the technology had remained unavailable in the country for more than eight years, despite payments for the software.
However, the court found that Tesla had provided some of the functions included in the package, including basic Autopilot and Enhanced Autopilot features. It also noted that a recent software update had introduced traffic light and road sign recognition, as well as city-driving capabilities, to older Tesla vehicles equipped with Hardware 3 (HW3) computers.
The court said Tesla’s obligation to introduce additional functions depended on technological progress and regulatory approval. It added that buyers had been aware that some features could take considerable time to become available.
It further ruled that Tesla could not be held responsible for delays arising from compliance with domestic and foreign regulations, even where some promised functions had not been delivered on schedule.
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The decision is another legal development in the dispute over Tesla’s claims about its self-driving technology, which Chief Executive Officer Elon Musk has repeatedly predicted would eventually enable fully autonomous vehicles.
Full Self-Driving is a driver-assistance system, not a guarantee of complete autonomy. Level 5 automation, the highest category of driving automation, refers to vehicles capable of operating without human intervention under all driving conditions. Tesla has yet to deliver that level of autonomy.
Tesla did not immediately comment on the South Korean ruling.
The company continues to face similar disputes in other markets. In China, 10 Tesla owners have filed a joint lawsuit seeking refunds for FSD and damages amounting to three times the purchase price of the software or the entire vehicle, according to a report.
In the United States, a federal appeals court earlier this month blocked Tesla owners in California from pursuing class-action claims alleging that the automaker misled buyers about its Full Self-Driving technology. The underlying lawsuit, however, remains pending.
The disputes highlight the legal and regulatory challenges facing Tesla as it continues to develop and market advanced driver-assistance technology while promising greater levels of vehicle autonomy.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
