He isn't necessarily lying, and there won't be a lawsuit. The "self-driving" will be made available, both in hardware and software. It just won't be usable on

He isn't necessarily lying, and there won't be a lawsuit. The "self-driving" will be made available, both in hardware and software. It just won't be usable on roads (because every state will immediately outlaw it). Few owners, brave enough to try it in spite of regulations, might discover some notable flaws... But hey, — no one promised you a perfect self-driving! You will be able to "self-drive" in couple of dedicated cities or around wilderness in the middle of nowhere (with modest risk of damaging vehicle), and that's supposedly what everyone has paid for. Musk won't be held responsible for restrictive laws, — he most likely anticipates that and hopes precisely for that.