TSLA342.2702.31%
GM86.7700.38%
F14.3650.475%
RIVN15.360-0.46%
CYD45.240-0.32%
HMC31.5800.38%
TM191.1102.4%
CVNA75.6201.92%
PAG219.8501.18%
LAD377.550-1.10999%
AN209.4101%
GPI263.9500.94001%
ABG210.6600.08%
SAH80.8301.59%
TSLA342.2702.31%
GM86.7700.38%
F14.3650.475%
RIVN15.360-0.46%
CYD45.240-0.32%
HMC31.5800.38%
TM191.1102.4%
CVNA75.6201.92%
PAG219.8501.18%
LAD377.550-1.10999%
AN209.4101%
GPI263.9500.94001%
ABG210.6600.08%
SAH80.8301.59%
TSLA342.2702.31%
GM86.7700.38%
F14.3650.475%
RIVN15.360-0.46%
CYD45.240-0.32%
HMC31.5800.38%
TM191.1102.4%
CVNA75.6201.92%
PAG219.8501.18%
LAD377.550-1.10999%
AN209.4101%
GPI263.9500.94001%
ABG210.6600.08%
SAH80.8301.59%

Judge refuses to dismiss class action lawsuit targeting Tesla insurance arm

Tesla will now need to face a class action lawsuit alleging its insurance division used false data to hike customer premiums
Tesla will now need to face a class action lawsuit alleging its insurance division used false data to hike customer premiums.

Tesla founder and CEO Elon Musk

A California judge on Monday refused to dismiss a lawsuit targeting Tesla and its insurance arm, setting the company up for a difficult legal battle involving plaintiffs from multiple states.

The class-action lawsuit, filed this April by plaintiff Ricky Stevens, alleged that the electric vehicle maker increased customer insurance premiums based on false data. According to the company, rates are determined based on a scoring system that uses information obtained from the vehicle to estimate how safely the owner is driving. One of the monitoring devices used to grade customers is the Forward Collision Warning, which alerts car occupants when they are at risk of crashing into an object. The more this alarm is triggered, the more likely the owner’s rate is to increase.

However, the lawsuit claims that the collision warning system frequently exhibited “sporadic and random” behavior, alerting owners of a threat that never existed and Tesla of poor driving that never happened. The plaintiff argues that these false alarms contributed to poorer safety scores, leading the company to hike the premiums of many customers without due cause. On its website, the EV brand notes that the scoring system ensures that rates are calculated based on “real-time driving behavior,” a claim that Stevens and his lawyer labeled as false advertising.

Tesla will now have to face the class-action suit in California, with an initial hearing scheduled for January. The judge’s refusal to dismiss the case arrives just after the brand launched its long-awaited Cybertruck to mixed reviews, while CEO Elon Musk faces mounting criticism for his online behavior.

Read More
More from Articles
Charlie Obaugh acquires Campus Ford in Virginia

Charlie Obaugh acquires Campus Ford in Virginia

- August 14, 2026
Charlie Obaugh Auto Group has acquired Campus Ford in Waynesboro, Virginia, from Matt McMurray. The transaction was announced in August 2026, with Performance Brokerage Services serving as the exclusive buy-side...
Revised USMCA proposals could cost billions annually, Detroit automakers warn

Revised USMCA proposals could cost billions annually, Detroit automakers warn

- August 14, 2026
On the Dash: USMCA revisions raising U.S. content thresholds to 50% could add at least $2 billion in annual costs per company. GM projects $2.5 billion to $3.5 billion in...
New-vehicle inventory tightens to 75 days' supply as July sales climb 8.5%

New-vehicle inventory tightens to 75 days’ supply as July sales climb 8.5%

- August 14, 2026
On the Dash: New-vehicle inventory drops to 75 days' supply as July sales climb 8.5%. Toyota, Lexus and Honda keep the tightest inventories while Stellantis works through excess stock. ...
Cox Automotive report finds dealers use AI widely, results still lag expectations

Cox Automotive report finds dealers use AI widely, results still lag expectations

- August 14, 2026
On the Dash: Focus AI investments on measurable dealership needs, not adoption for its own sake. Prepare teams for shoppers who are using AI before they reach the showroom. Build...
CBT News
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.