What We’re Reading
Self-Driving Carmakers to See Increased Liability for Crashes, Report (IOT World Today, November 15, 2023)
Fully self-driving cars are still years away from mainstream use, despite the increasing advances in AV technology. A new MarketWatch report states that the United States is “at least a decade away from fully self-driving cars.” There are two main problems facing the AV industry: innovation outpacing regulation and increasing costs of repairs.
Federal and state governments are unsure how to update legislation around autonomous vehicle use and development, especially with ongoing issues such as those with Cruise and Tesla. The report predicts a shift in liability from driver to the automaker as liability regulation becomes more of a necessity. “If a driverless car hits another vehicle or pedestrian, determining who’s at fault gets complicated,” the report states. “The traditional model of car insurance will likely need to be adjusted to hold manufacturers or software developers liable for collisions caused by autonomous vehicles.”
The other main issue is the increasing cost of repairs. Currently, there are not enough certified or skilled mechanics who are able to work on repairing autonomous vehicles, since “AVs have complex components that require automotive specialists to repair.” While the number of certified mechanics is expected to increase over the upcoming years, there are currently not enough, driving up the costs of repairs.
Tesla will sue for $50,000 if you try to resell your Cybertruck (News 5 Cleveland, November 13, 2023)
According to a new update to Tesla’s terms and conditions in its Purchasing Agreement, Tesla will sue you if you attempt to resell your Tesla Cybertruck within the first year after purchase. Tesla added a section to its buyer’s agreement titled “For Cybertruck Only,” in which the company states: “You agree that you will not sell or otherwise attempt to sell the Vehicle within the first year following your Vehicle’s delivery date.” It further states that “Tesla may seek injunctive relief to prevent the transfer of title of the Vehicle or demand liquidated damages from you in the amount of $50,000 or the value received as consideration for the sale or transfer, whichever is greater. Tesla may also refuse to sell you any future vehicles.”
If a customer should have reasonable cause to return the vehicle, Tesla may agree to buy it back, minus “$0.25/mile driven, reasonable wear and tear, and the cost to repair the Vehicle to Tesla’s Used Vehicle Cosmetic and Mechanical Standards,” or Tesla may agree to allow the customer to sell the vehicle.
The long-awaited Cybertruck is expected to be released on November 30.
Tesla Owner Wins $10k Settlement Over Tesla’s FSD Claims (Not a Tesla App, November 8, 2023)
In what could be harbinger of things to come, at least on the European front, a UK Tesla owner recently obtained a significant settlement from Tesla over his claim that the automaker’s FSD feature failed to deliver as promised. This outcome highlights the UK’s consumer-centric approach to resolving disputes with automakers, the backbone of which is the UK Consumer Rights Act 2015 that requires goods to match their advertised description.
On this side of the pond however, a California federal judge’s ruling last month led to a much different outcome in similarly pled allegations. There the court held that any consumer disputes between Tesla and its vehicle owners must be resolved through individual arbitration rather than in court, pursuant to the term and conditions of the purchase contract. In addition to avoiding class action lawsuits, binding arbitration allows Tesla to mitigate legal risks by individually defending each claim outside the public court system and without concerns of creating adverse legal precedent.
These divergent avenues of recourse highlight the complexities of the evolving international landscape of autonomous vehicles and the nuanced approaches different countries are taking to balancing this emerging technology with consumer rights.