South Korean Court Dismisses Tesla FSD Refund Lawsuit, Ruling No Promise of Full Autonomy
Seoul Central District Court ruled Tesla did not promise Level 5 autonomy, removing immediate refund risks in South Korea.
According to Invezz, the Seoul Central District Court dismissed a lawsuit seeking refunds for Tesla's Full Self-Driving (FSD) software on Thursday. The court ruled that Tesla had not promised fully autonomous vehicles, thereby negating the claim of breach of contract. This verdict removes an immediate refund threat in the South Korean market but does not establish that Tesla has achieved Level 5 autonomy, which requires no human intervention, nor does it resolve similar disputes in other regions.
Plaintiff owners argued they paid for self-driving capabilities that Tesla failed to deliver. Judges stated that Tesla supplied some contracted features, including Autopilot functions, and that additional capabilities depended on technological advances and regulatory approvals. For investors, this legal victory alleviates specific compliance pressure in one market, but Tesla's financial fundamentals remain strained: operating margins fell to approximately 2.6% in the third quarter, with operating profit declining sharply due to increased spending on AI and robotics development.