Tesla is facing a consumer lawsuit in China over its Full Self-Driving (FSD) feature. A Beijing court held its first hearing in a case brought by 10 vehicle owners alleging misleading advertising and fraud.
The plaintiffs are seeking more than 3.95 million yuan ($583,000) in damages, arguing that Tesla's FSD system does not deliver the capabilities implied by the company's marketing.
The dispute centers on whether the technology meets claims of "full self-driving capability." The plaintiffs contend that the system has not received regulatory approval in China and cannot perform certain functions promoted by the company.
The lawsuit also alleges Tesla concealed hardware defects and limitations to encourage vehicle purchases.
Tesla disputed the allegations during court proceedings. The company said some FSD functions are fully operational, while others are partially functional or remain under development.
The hearing marks the first court proceeding in the case, which was brought by a group of Tesla owners in Beijing.
The legal challenge adds to scrutiny surrounding Tesla's Full Self-Driving technology, which has faced regulatory reviews and safety investigations in several markets.
China is one of Tesla's largest markets and a key production hub. The company has been expanding software and driver-assistance features in the country as competition intensifies among electric vehicle manufacturers.
Tesla has not provided an official update on the case.
The plaintiffs are seeking compensation based on claims that the company's marketing and product descriptions overstated the capabilities of the FSD system available to customers in China.
A ruling timeline was not disclosed during the hearing.
