Tesla quietly removes controversial feature as lawsuit looms: 'It is unclear what will happen'

Tesla has quietly removed a metric from its Safety Score formula as a lawsuit looms. 

What's happening?

As detailed by Drive Tesla Canada, Tesla eliminated forward collision warnings from its Safety Score system — introduced in 2021 to determine monthly Tesla insurance premiums. In short, drivers with higher safety scores can earn lower premiums. 

However, the FCW feature was "particularly controversial." Drivers reported the warning system would go off even when they weren't in danger of a crash, falsely lowering their score and resulting in higher insurance premiums. 

One Illinois resident filed a class-action lawsuit against State National Insurance Company — which underwrites Tesla Insurance — alleging it had improperly inflated his premiums as a result of Tesla's beta Safety Score system. 

Tesla requested a dismissal of the class-action lawsuit, but a judge ruled in December 2023 that the case could proceed. The automaker has until October to formulate its legal defense.

Why is this important?

Despite a number of high-profile recalls, Tesla ranks as one of the five safest car brands in the world, according to U.K. car insurance comparison service Confused.com. 

Electric vehicle drivers also haven't hesitated to extoll their experiences with Tesla's safety features on social media. One person even shared how the automaker's technology saved them from a potentially deadly crash with a semi that changed lanes. 

However, Tesla's rollout of new features has hit plenty of speed bumps. In China, for instance, errors in the automaker's Full Self-Driving software resulted in drivers racking up expensive fines for traffic violations. 

These failings, along with increased market competition from electric vehicle makers such as BYD and CEO Elon Musk's polarizing involvement in politics — including as a special adviser in the U.S. federal government — have contributed to a sales slump early in 2025. 

What impact will the lawsuit have?

As Drive Tesla Canada noted, "It is unclear what will happen with the lawsuit." However, the outlet speculated that Tesla's removal of FCW from its Safety Score could mean it is willing to settle rather than let things play out in court. 

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If that occurs, it said drivers could have a harder time claiming they suffered ongoing harm from the beta system, making it more challenging to hold Tesla accountable for past damages. Nonetheless, the FCW removal could at least help prevent the issue from continuing. 

Given Tesla's reputation as a pioneer in EV technology, the lawsuit may turn people off the idea of owning an EV. 

However, even though EVs are imperfect, they have lower operating and maintenance costs than gas-powered vehicles and don't spew problematic heat-trapping air pollution. This is true whether you choose to drive a Tesla or an EV from a competing brand. 

Confused.com also found that EVs outperformed gas-powered vehicles in terms of safety.

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