Seoul Court Rejects Tesla Owners' Bid for FSD Refunds

what happened

A district court in Seoul dismissed a complaint from 88 Tesla owners who had demanded refunds for the Full Self-Driving software, according to GuruFocus. The court found that Tesla was not dishonest when it claimed its vehicles would eventually reach fully driverless Level 5 operation. Some features, including Autopilot and Enhanced Autopilot, had already been provided by the company. The judges ruled that Tesla would have to expand capabilities only once the technology advanced and regulators approved. They also held that the company could not be solely blamed for delays tied to regulatory compliance.

The decision reduces legal risk in South Korea but does not settle the broader problem. Refund disputes in China and possible US lawsuits over how FSD was marketed remain ongoing.

why it matters

Investors were pleased that the court backed Tesla's position that FSD was never sold as a guarantee of fully autonomous driving. Further court decisions in the US and China will be a key factor in judging the company's legal exposure.

market impact

Tesla shares: lower legal risk in South Korea gives the stock some support

• ▲Tesla shares pressure up — the ruling reduces legal risk tied to FSD in South Korea

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