Tesla Owner Wins $10k Settlement Over Tesla's FSD Claims

By Kevin Armstrong
UK Tesla owner successfully settles lawsuit against Tesla
UK Tesla owner successfully settles lawsuit against Tesla
Tesla

In a landmark decision, Ed Butler, a UK Tesla owner, won a significant settlement from Tesla after challenging the company's Full Self-Driving (FSD) feature claims. Butler successfully settled his lawsuit over FSD capabilities, which he argued had not been delivered as promised when he purchased his Model 3. This settlement not only returned the cost of the undelivered FSD feature but also set a notable precedent for consumer rights in the region.

Butler's case reinforces the strength of the UK's Consumer Rights Act of 2015, which proved to be a formidable tool in holding Tesla accountable. The act's stipulation that goods must match their advertised description was the linchpin of Butler's claim, highlighting the legal obligations of companies to fulfill their marketing claims.

Contrast with the US Arbitration Ruling

In stark contrast to the UK's consumer-centric outcome, a California federal judge's ruling last month paints a different picture of Tesla's legal defenses. The judge ruled that Tesla owners must settle their disputes through individual arbitration rather than in court, adhering to Tesla's terms and conditions agreed upon at purchase. This decision emphasizes the binding nature of such agreements and showcases the company's success in utilizing arbitration to avoid class action lawsuits.

Tesla's reliance on arbitration clauses in the US is a common practice within the tech industry, designed to mitigate legal risks and manage disputes out of the public court system. The California ruling illustrates the effectiveness of these clauses in protecting corporate interests, even amid allegations of misleading advertising and safety concerns related to Tesla's automated driving features.

Analysis of Legal Strategies and Consumer Rights

The contrasting outcomes of these cases in the UK and US highlight differing national stances on consumer rights and corporate accountability. While UK law enabled Butler to challenge and settle with Tesla, the US arbitration ruling underscores the challenges consumers face when bound by pre-agreed contractual terms. These divergent paths reflect the complexities consumers and corporations encounter in the evolving landscape of automotive technology and legal recourse.

With over £8,000 (About $9,800 USD) in settlement and the removal of FSD from his vehicle, Butler's case against Tesla concludes, setting a benchmark for consumer rights in the technology and automotive industries. This case could lead to increased legal scrutiny of Tesla's FSD feature descriptions and a push for more transparent communication from the company to avoid similar legal disputes in the future. For Tesla owners, this case is a clarion call to remain vigilant about the features they are promised and to seek correction if those promises are not kept.

The recent UK settlement in favor of Ed Butler against Tesla, adjacent to the California ruling on mandatory arbitration, presents a nuanced view of the legal battles surrounding Tesla's advanced driving technologies.

Tesla's Shareholder Event: Vote Results And Video Replay

By Karan Singh
Not a Tesla App

Yesterday on X, Elon Musk posted that the two key resolutions for the upcoming Shareholder Meeting were both passing by wide margins – and would subsequently go on to pass at today’s Shareholder Meeting.

Musk Compensation Package and Tesla’s Move to Texas

The two key resolutions, one on Elon Musk’s performance-based compensation package, and the other on Tesla’s re-incorporation to Texas, both passed in the preliminary stages. Each required a minimum number of ‘Yes’ votes to pass at the Shareholder Meeting.

The performance-based compensation package only required a simple majority – a certain number of Yes votes, with abstentions not counting as Nos. On the other hand, the move to Texas required a full majority, with abstentions counting as Nos.

Elon Musk declared his victory on X in these two key votes, and Tesla’s share prices moved favorably in post-market, and then again in pre-market trading. This is a positive indicator for Tesla and Elon Musk. On X, Elon recently agreed that given he has received a controlling stake in Tesla, he would work towards making Tesla the most valuable company on Earth.

Other Resolutions

The first five proposals are Tesla corporate proposals, while the remainder are shareholder proposals, and are covered in the table below. For more details, you can read Tesla’s Proxy Package. The proposals are ordered below in the order of presentation.

Resolution

Status

Elect 2 Directors for a 3 Year term (James Murdock, Kimball Musk)

PASS

Non-Binding Advisory-basis Executive Compensation

PASS

Move Tesla to Texas

PASS

Elon Musk’s Compensation Package

PASS

Appoint PricewaterhouseCoopers as Tesla’s accounting firm.

PASS

Reduce Director Terms to 1 Year

FAIL

Simple Majority Stockholder Voting

FAIL

Annual Report on Anti-Harassment and Discrimination

PASS

Freedom of Association and Collective Bargaining Policy

PASS

Report on EM Radiation and Wireless Technologies, and effects on humans.

PASS

Adopting targets and reports for sustainability metrics for executive compensation

PASS

Moratorium on sourcing minerals from deep-sea mining.

PASS

Shareholder Meeting Event

You can view Tesla’s shareholder meeting below:

Tesla Likely to Launch Robotaxi Service in Next 5 Years, May Account for 90% of Future Profit

By Karan Singh
ARK Invest

Tesla is on the verge of its Robotaxi announcement event on 8/8, and major investors like Ark Invest are examining and refreshing their bull case scenarios.

Robotaxi as a Focus

Ark Invest sees Robotaxi as a focus of Tesla’s ongoing business and sees Tesla’s autonomous ride-hailing revenue to net nearly $1 trillion in 2029. In comparison, they estimate Tesla’s vehicle sales to account for $0.4 trillion in revenue. With this bull case, Ark Invest also sees Tesla’s share price soaring to $3,100 by 2029. Ark Invest’s bear case sees the share price moving to $2,000 and robotaxi netting $0.63 billion in revenue.

Ark Invest gives Tesla a 58% chance of launching its robotaxi service in 2025, and a 38% chance in 2026. It’s clear that Tesla’s future lies in operating a fleet of autonomous vehicles and the question is just when it will happen. Given FSD’s massive improvements between FSD V11 and FSD V12, there is a possibility of Tesla meeting these estimates, although a lot depends on how fast improvements will continue to come. While FSD V12 is impressive, it’s still a long way from a true autonomous vehicle.

Rate of Improvement

Miles driven by Tesla FSD versus autonomous competitors
Miles driven by Tesla FSD versus autonomous competitors
ARK Invest

Ark’s case is focused on the fact that FSD’s rapid improvement will continue, and a lot of that may be determined with the next few releases, including FSD 12.4.1, v12.5, and v12.6. When comparing Tesla to autonomous vehicles, Tesla has a drastic lead in miles driven, in fact, it’s so large that you can barely even see Tesla’s competitors. Tesla is at 1.3 billion miles driven with FSD, while the closest competitors are just reaching 15 million autonomous miles driven. While there’s a drastic difference in capabilities between Tesla’s FSD and autonomous vehicles such as Google’s Waymo, Tesla has the ability to gather data 86 times quicker.

Training data is key to building autonomous vehicles, and Tesla is currently the king of vehicle-related data.

Services Company

We previously wrote about whether Tesla’s future will be as a car company or a services company – and major investors such as Ark Invest and Morgan Stanley see Tesla’s AI services as a major driver of business in the future, and the focus of future revenue and profits.

Robotaxi, as both a service and as a physical product, has the opportunity to shake up markets in a unique way, providing quick, clean, and safe transportation between local destinations in urban areas, which could quickly outcompete traditional services like taxis, and tech competitors like Uber or Lyft. The market for robotaxi is untapped and massive, but Tesla isn’t the only one chasing the goal.

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