Judge rules Tesla phantom braking lawsuit can proceed

Whistleblower report says Tesla recorded inadvertent emergency braking and other reported cases of phantom parking

Over the years, many Tesla owners have complained about “phantom braking,” a phenomenon in which the car suddenly and inexplicably applies the brakes, often with no obvious danger in sight. Now, a U.S. District Judge in Chicago has allowed a lawsuit against Tesla over these so-called “phantom braking” issues.

The lawsuit accuses Tesla of concealing flaws in its forward collision monitoring system, which it said could trigger sudden and unnecessary braking without any real danger. While some parts of the lawsuit have been dismissed, the core claims regarding the phantom braking issue remain.

The lawsuit was originally filed in 2023 by Tesla Model 3 owner Joshua Santiago. He claims that the forward collision monitoring system used by Tesla is defective and can suddenly activate when there is no actual danger or risk of collision, known as “phantom braking”. The lawsuit also accuses Tesla of charging exorbitant auto insurance premiums because of a defective crash detection system.

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Late last week, U.S. District Judge Georgia Alexakis ruled to narrow the scope of the lawsuit but uphold the core claims about phantom braking. Tesla has moved to dismiss the entire case, but the judge’s decision ensures the defect claims will be heard in court.

The lawsuit alleges that Tesla knew about the alleged defects as early as 2015 but failed to inform customers. The whistleblower report said Tesla recorded “139 incidents of unintended emergency braking” and “383 incidents of phantom stops due to false collision warnings.” The National Highway Traffic Safety Administration (NHTSA) has also received hundreds of complaints about the system’s failures.

Tesla regularly deploys over-the-air software updates, but the plaintiffs argued those efforts failed to resolve the issues. Santiago claimed that he “would not have purchased his vehicle” had he been “aware” of the defect, framing the case as a consumer transparency issue.

Premium claim on hold

While the phantom braking allegation continues, Judge Alexakis dismissed claims that Tesla inflated insurance premiums due to an alleged defect in its crash-monitoring system. However, the plaintiffs have been allowed to file an amended complaint to reinstate these claims as more evidence is gathered.

Tesla has previously denied claims it was aware of the phantom braking problem in its popular electric cars.