Tesla Owner Details Legal Strategy Behind Full Self-Driving Refund

After failing to deliver on its autonomous promise, the automaker was forced to reimburse the owner through arbitration

A row of Tesla Model Ys. A Tesla owner recently wrote a blog post about getting a refund through arbitration for the Full Self-Driving package.
Tesla's Full Self-Driving package is at the center of a recent legal case.
David Paul Morris/Bloomberg via Getty Images

What happens when an automaker touts a feature that turns out to be less viable than expected? That’s what Washington State resident — and lawyer — Marc S. Dobin discovered after he and his wife purchased a Tesla Model Y in 2021.

As Dobin explained in a blog post, this was the third Tesla his family had purchased; the Model Y was of particular interest for two reasons, both having to do with what he describes as his “wife’s mobility issues”: its size and the prospect of Full Self-Driving capabilities. The couple believed that the latter would help her to “maintain independence as her motor skills declined,” as Dobin writes.

Unfortunately, soon after they purchased the car, it became clear that the ambitious self-driving software touted by Tesla CEO Elon Musk was not yet operational, and may never be. This was especially frustrating for them because they had paid an additional $10,000 for the FSD package. Dobin describes learning of the eventual beta launch of Full Self-Driving, which he and his wife did not qualify for.

Tesla requires that disputes with the automaker go to arbitration, a practice they have been criticized for. However, Dobin describes himself as an “experienced arbitration lawyer” — and he won his case, receiving a refund of the $10,000 he had paid for the non-working package, plus tax and legal fees.

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“I’ve spent my career litigating and arbitrating,” Dobin acknowledges. “Most consumers won’t know how to navigate this.” His post is intended to show that challenging Tesla can be done, and done successfully, especially as it relates to the company’s promises about Full Self-Driving capabilities.

As Electrek’s Fred Lambert observed, “[T]he fact that Tesla would waste money trying to fight customers requesting a refund is really telling.” It’s also frustrating to read about Dobin’s issues with the automaker — drivers who have bought multiple Teslas and were enthusiastic about the technology are not the sort of people Tesla should be alienating with their actions.

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Tobias Carroll

Tobias Carroll

Tobias Carroll lives and writes in New York City, and has been covering a wide variety of subjects — including (but not limited to) books, soccer and drinks — for many years. His writing has been published by the likes of the Los Angeles Times, Pitchfork, Literary Hub, Vulture, Punch, the New York Times and Men’s Journal. At InsideHook, he has…
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