Tesla Wins Key Procedural Victory as Ninth Circuit Vacates FSD Class Certification

A three-judge panel of the U.S. Court of Appeals for the Ninth Circuit ruled on October 16, 2026, that a proposed class action against Tesla over its Full Self-Driving (FSD) hardware claims cannot proceed as a class. The decision in LoSavio v. Tesla vacates certifications ordered by U.S. District Judge Rita Lin in August 2025, citing insufficient evidence of uniform exposure to Tesla's allegedly misleading statements about vehicle hardware capabilities for autonomy. Plaintiffs, led by Thomas LoSavio, alleged Tesla misrepresented that cars sold since October 2016 included hardware sufficient for full self-driving, leading buyers to pay premiums for underperforming software. The appeals court, including Judges Ronald Gould, Jay Bybee, and Daniel Bress, emphasized that unlike product labels visible to all purchasers, Tesla's hardware claims appeared on an optional Autopilot webpage not required for completing purchases. This individualized inquiry defeats predominance under Federal Rule of Civil Procedure 23. The ruling, which is unpublished and non-precedential, leaves the underlying claims intact for individual litigation and remands the case to the district court. The U.S. Chamber of Commerce supported Tesla's position with an amicus brief. Plaintiffs' counsel expressed disappointment, arguing the panel overlooked Tesla's unique direct-to-consumer marketing. This development underscores challenges in certifying classes for digital-era advertising claims, particularly for emerging AI technologies like autonomous driving systems that parallel broader workforce automation trends.