Tesla is reportedly facing a growing wave of international lawsuits from angry Tesla car owners who claim they were sold a “self-driving” dream that has failed to materialise. The legal battle centers on ‘promises’ made as far back as 2017, with drivers across Europe, Australia and the US now demanding their money back, as per a report by Benzinga.
The latest legal challenges arrive just two days before Tesla is set to report its first-quarter earnings.
Tesla facing global backlash
According to the report, the newest legal front opened last week in the Netherlands after a Dutch Tesla owner launched a massive campaign to organise European drivers who paid thousands of dollars for automated driving features they still cannot use in their Tesla cars.This joins a growing list of similar legal battles:An 80-year-old retired attorney in California paid $8,000 for “Full Self-Driving” (FSD) in 2017, and he recently won class-action status.
He now represents roughly 3,000 owners seeking full refunds. Another lawsuit is reported to be in Australia where a major law firm is pursuing a separate class action, accusing Tesla of selling cars that are physically incapable of ever becoming fully autonomous.
The ‘Hardware 3’ problem in Teslas
At the heart of these lawsuits is a technical bottleneck known as Hardware 3. This is the computer system installed in millions of Tesla vehicles produced over the last several years. The report notes that Wall Street analysts now say this hardware is likely too outdated to run Elon Musk’s newest and most sophisticated AI software.
Musk told investors in early 2025 that the company would eventually upgrade these older systems for “lifetime” buyers but admitted the process would be “painful and difficult.”In 2020-2021, Tesla offered free upgrades to some early buyers but in 2023, Tesla moved to “Generation 4” hardware which resulted in the owners who paid for “lifetime access” years ago find themselves stuck with obsolete equipment once again.
