Class Action Says Tesla Vehicles Plagued by False Collision Alert Defect

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Tesla, Inc. faces another proposed class action lawsuit that claims the automaker has failed to address a “dangerous” defect in certain of its vehicles that puts drivers at risk and has caused an increase in premiums for consumers enrolled in Tesla Insurance.

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The 25-page lawsuit says that Tesla vehicles suffer from a serious defect that falsely triggers forward collision alerts, which emit a loud and distracting noise and can cause the vehicle to automatically brake when there is no danger of an accident. Aside from presenting a safety hazard, the false collision warnings decrease the “Safety Scores” of Tesla Insurance policyholders, whose monthly premiums have increased because of the erroneous “unsafe driving events,” the suit alleges.

Although Tesla regularly updates the software of its older models, the case claims that the company has failed to fix the collision warning defect or announce a recall of the impacted vehicles.

Per the complaint, Tesla should have addressed the defect after receiving a “barrage of consumer complaints” about the false alerts and “phantom braking” incidents or, at the very least, disclosed the problem to buyers before purchase. According to the filing, hundreds of complaints have been lodged with the National Highway Traffic Safety Administration (NHTSA), on online forums, and with Tesla itself.

“Consumers nationwide have complained of the Collision Warning Defect and the associated safety risks, but Defendant has failed to implement a recall, remedy the [defect], provide adequate repairs, or take appropriate action to protect Tesla drivers, other drivers, and pedestrians from danger,” the lawsuit charges.

What’s more, the Tesla Insurance program, which was announced in October 2020 by CEO Elon Musk and is now offered in 11 states, bases policyholders’ monthly insurance premiums on “real-time driving behavior,” the suit says.

The case contends that, as a result of the false forward collision alerts caused by the defect, Tesla drivers’ premiums are “inflated,” with the company “unfairly” overcharging its customers because of driving events that “never actually occurred.”

In 2021, the plaintiff, an Illinois resident, bought a 2020 Tesla Model 3 and right away began feeling the effects of the forward monitoring system defect, the complaint relays. The man experienced the issue mostly when driving through parking lots and turning at intersections, despite the absence of other vehicles or pedestrians, the filing says. As the suit tells it, each time the false forward collision signal would sound, the loud warning alarm would cause the plaintiff “unnecessary panic.”

As a policyholder enrolled in Tesla Insurance’s driving safety discount program, the plaintiff has also felt the impact of the defect in his monthly insurance premium, which has increased as a result of his lowered “Safety Score,” the case adds.

The lawsuit looks to represent anyone in the Unites States who purchased a Tesla vehicle in the U.S. or its territories, including those who enrolled in the Tesla Insurance program, within the applicable statute of limitations period.

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