Tesla Ordered to Pay $10,600 Over Misleading FSD Claims — But Automaker Refuses to Settle
A New Jersey judge has ordered Tesla to pay $10,600 to owner Ben Gawiser after finding the company misled customers about its Full Self-Driving (FSD) capabilities. Despite the ruling, Tesla continues to file delays, fighting each small step in the payment process.
The judgment comes after years of Tesla promising that every vehicle it produced had the hardware needed for self-driving—a claim Gawiser says never materialized. 'I bought the car based on Elon Musk's promises, but three years later, FSD still doesn't work as advertised,' Gawiser told reporters.
Legal experts say this case could set a precedent. 'Automakers cannot advertise a feature they knowingly cannot deliver,' said consumer rights attorney Sarah Jenkins. 'Tesla is now using procedural delays to avoid accountability.'
Background
Since 2016, Tesla has repeatedly stated that all new vehicles include the necessary hardware for autonomous driving. Customers paid thousands for the FSD package, expecting regular software updates to unlock full self-driving.
However, the technology has remained in beta for years, with many users reporting safety lapses and unresolved glitches. Gawiser filed a small claims suit in 2023, arguing Tesla breached its contract by failing to deliver the promised feature.
The court agreed, ruling that Tesla's marketing lacked 'reasonable substantiation' for its claims. Yet the company has appealed every minor aspect of the order, including the payment deadline.
What This Means
This case is a warning shot for Tesla and other automakers. If Gawiser's victory stands, it could encourage thousands of other FSD owners to seek refunds through small claims court—where Tesla cannot easily appeal without incurring steep costs.
Industry analyst Mark Turner notes, 'Tesla is fighting not just over $10,600, but to avoid an avalanche of similar lawsuits. Their strategy is to wear down plaintiffs.'
For now, Gawiser remains determined. 'I am not dropping this. They lied to me and thousands of others. This is about principle,' he stated.
The next hearing is scheduled for May, where Tesla will again argue for a longer payment timeline. Will the automaker eventually pay up—or keep delaying indefinitely? Only the court can decide.
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