This wouldn't be a breach of contract claim. The contract has nothing to do with anything. That's a red herring. Any claim would be based outside the contract on consumer protection grounds. Tesla has no viable response.
We've had this discussion before. Volvo didn't learn and now is on the wrong end. Tesla is similarly vulnerable.
http://www.siprut.com/gallery/wp-content/uploads/2018/01/Law360-Volvo-article.pdf
Basically, most of the legal argument surrounding contract law is useless. Consumer fraud laws are very clear in a lot of states and Tesla is in trouble if they think they can keep on ignoring customers and failing to deliver.
The language about software validation and regulatory approval won't work to protect Tesla because their software validation efforts would need to be proven and that they submitted the system for regulatory approval and the reason for the denial.
If it is based, in any way, on deficient hardware. Tesla is F'd. They said repeatedly that AP2 cars have all the hardware necessary for FSD. Even
@Canuck seems to think AP2 is deficient in a way Tesla did not disclaim (e.g. hardware deficiency) but somehow he concludes that the parol evidence rule would prohibit evidence on that but it will not apply in a consumer fraud context nor does it apply where the four corners are ambiguous and outside information is needed to fairly read the contract. The Four Corners rule is not implemented by many states anymore, it is an anachronistic rule that is no longer strictly enforced unless the contract has an integration clause and is not a form contract (contract of adhesion). Tesla's are 100% contracts of adhesion as they cannot be negotiated and its a company selling something to a consumer.
TLDR: No one should be dissuaded from seeking legal relief just because someone on the internet says you can't or shouldn't or it'd be a waste of time. Consult a real attorney who knows the particular laws of your state/country/judicial region and can advise you of the specific remedies available to you.
Illinois has a very strong consumer protection law that explicitly applies regardless of intent of the "fraudulent" party (fraud being a term that has also greatly departed from its common law roots and therefore I believe
@Canuck 's analysis is similarly dated and inapplicable).
And yes, I understand that in the case above it was merely winning a MTD rather than an actual judgment. I also know that statutory claims that are adequately pled succeed in astounding rates as there are few defenses available if you lose a MTD. Facts are facts and the statute is clear. Volvo is ****ed.
Bottom line: Tesla would be wise to reach out and explain where they are in their development, what they intend to do for customers who have purchased EAP and/or FSD, and what compensation they intend to give to customers who have been misled by their extraordinarily deceptive FSD videos and statements.
With some communication, maybe people won't bother to sue if they appreciate why there have been delays, what a reasonable new timeframe is, and why Tesla keeps over-promising so badly and failing to acknowledge their failures and make amends.