News about class actions

The 9th US Circuit Court of Appeals overturned a lower-court order that allowed California Tesla customers to sue as a group over claims they were misled about full self-driving (FSD). The three-judge panel found too many individual questions, including what each buyer saw before purchase and whether all class members saw the website claim that vehicles sold from October 2016 onward had the hardware needed for FSD. The ruling is not on the merits and the false advertising case remains pending; plaintiffs allege customers paid extra for software that does not work, which Tesla denies. The article notes FSD matters to Tesla's business: about 55% of North American deliveries had an FSD subscription enabled at delivery and nearly 1.5 million customers pay for FSD worldwide. Meanwhile, free cash flow was negative last quarter as capital spending more than doubled, and automotive margins excluding credits fell from 19.2% to 16.3%.