Tesla modifies FSD contracts amid global lawsuits over autonomous driving promises

Tesla has quietly altered the wording in its Full Self-Driving (FSD) contracts, replacing the term “Full Self-Driving Capability” with language that emphasizes the system is “supervised” and requires the driver to remain ready to intervene. Owners who purchased the FSD package between 2016 and early 2024 report that earlier contracts have been changed or become inaccessible.

The documentation changes come as the company faces a wave of litigation alleging false advertising and product fraud. In the United States and Europe, lawsuits claim the promised autonomous capability is misleading. In China, ten owners have filed a class action seeking $583,000 in damages, arguing that the FSD software is incompatible with older Hardware 3 vehicles. Tesla responded by rebranding the offering in China as “Tesla Assisted Driving,” a level‑2 driver‑assist system.

Similar collective actions have arisen in Australia and the Netherlands, and analysts estimate the total legal exposure could reach tens of billions of dollars. Elon Musk has acknowledged that Hardware 3 lacks the bandwidth needed for full autonomy, further fueling consumer dissatisfaction.