A court in South Korea has sided with Tesla in a closely watched case over Full Self-Driving (FSD). On Thursday, October 29, the Seoul Central District Court dismissed a lawsuit from Tesla owners who wanted their money back for the FSD option, ruling that Tesla had not broken its contract.
What the owners argued
The owners bought FSD for their cars between 2019 and 2022 and filed suit against Tesla Korea in December 2024, according to SBS. Reuters puts the number of plaintiffs at 88, while Korean outlets SBS and the Seoul Economic Daily report 89. They argued that Tesla had sold FSD in Korea since around 2017 without ever delivering full self-driving, and pointed to the later rename to “FSD (Supervised)” and the shift to subscriptions as signs Tesla had given up on the promise.
What the court decided
The court rejected every claim. Its main findings, as reported by Reuters, SBS and the Seoul Economic Daily:
- The FSD option was not a promise of Level 5 driving with no human involved. It covers partial automation that needs a driver, on top of basic Autopilot and Enhanced Autopilot features like Summon and Autopark.
- The contract delivers extra features when technology and regulators allow, and buyers knew some features could take a long time.
- Delays caused by following Korean and foreign rules are not Tesla’s fault.
- Owners bought FSD for cars with HW3 computers, so not getting the exact same features as HW4 cars is not a failure to deliver.
Reuters says the court also noted that a recent software update added traffic light and sign recognition and city-street driving to older HW3 cars. Tesla did not immediately comment on the ruling.
Why Canadian owners should care
A Korean ruling has no legal force in Canada, but the arguments will sound familiar to Canadian HW3 owners who paid for FSD years ago. Here, HW3 cars have been receiving the trimmed-down FSD v14 Lite builds, most recently alongside FSD v14.3.13 on software 2026.38.5.11. The Straits Times notes similar refund claims are underway in China and the United States, so this is unlikely to be the last court to weigh in.
The decision was a first-instance ruling, so the owners could still appeal.
Did you buy FSD on an HW3 car? Are you happy with v14 Lite, or still waiting? Tell us in our Facebook group, Tesla Model Y & 3 [Ontario, Canada], where thousands of Ontario owners talk FSD every day. Come join the conversation!
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Featured image: Tesla Model 3 touchscreen. Photo: SirAsdof via Wikimedia Commons (CC BY-SA 4.0).
Sources
- Reuters via CNA: Seoul court dismisses lawsuit by Tesla owners seeking refunds for Full Self-Driving tech
- SBS: Court rules against Tesla owners in 1st trial over FSD refund lawsuit
- Seoul Economic Daily: Tesla owners lose suit seeking refunds for FSD option in Korea
- The Straits Times: Seoul court dismisses Tesla FSD refund lawsuit
- @Tslachan on X: early report of the ruling