Image Credit: Tesla

Tesla Sued by Customers in China Over FSD Promises: Report

Tesla is reportedly facing lawsuits in China as several owners accuse the EV maker of fraud and contract violations tied to its assisted driving software.

The Beijing News reported on Sunday that seven Tesla owners in China claim the vehicles they bought with its Full Self-Driving (Supervised) software cannot deliver the advertised features because of hardware limitations.

The Elon Musk-led company is being accused of committing consumer fraud, with customers seeking a full refund plus triple compensation.

The owners said that FSD only supports automatic lane changes on highways, while other promised features — like summoning the car in open parking lots — never worked.

As a result, self-driving capabilities — in its Supervised version — have still not been achieved, while Tesla is already rolling out the Unsupervised version in the US, via its robotaxi service.

This is the first time, according to public records, that Chinese Tesla owners have filed lawsuits specifically regarding FSD — which has launched in China earlier this year, starting with the offer of a one-month trial.

While reporting its second quarter earnings results, the company said it is working toward a “broader release” of the software in China, the world’s largest market for new energy vehicles.

In April, China’s Ministry of Industry and Information Technology (MIIT) banned terms like ‘autonomous driving’ or ‘full self-driving,” saying companies should “avoid exaggeration or false advertising.”

By then, Tesla changed FSD’s denomination to ‘Intelligent Assisted Driving’ (“智能辅助驾驶”) in the country.

The ‘Intelligent Assisted Driving’ software is priced at 64,000 yuan, equivalent to about $8,900.

In the US, Tesla’s supervised FSD is priced from $99 as a monthly subscription or from $8,000 as a single-payment.

The system is also available in Canada, Puerto Rico, Mexico and, since early this month, in Australia and New Zealand.

The company has repeatedly stated that the system is pending regulatory approval in Europe.

The latest amendment on regulation from the United Nations Economic Commission for Europe (UNECE) suggests that it could be available in September — however, it has not been released as of yet.

Matilde is a Law-backed writer who joined CARBA in April 2025 as a Junior Reporter.