Tesla and CEO Elon Musk have been named in a new class-action lawsuit filed by shareholders who claim the company misrepresented the safety and readiness of its autonomous driving technology, particularly its newly launched Robotaxi fleet.
The lawsuit, filed on Aug. 4 in federal court in Austin, Texas, alleges Tesla failed to disclose key risks tied to its self-driving vehicles. It focuses on the June 22 public debut of Tesla’s Robotaxi service in Austin, where the fleet reportedly showed erratic driving behavior, according to court filings.
The plaintiffs argue these incidents contradicted Tesla’s assurances of a “scalable and safe deployment” of autonomous vehicles. The lead plaintiff, Tesla shareholder Denise Morand, is seeking damages on behalf of investors who purchased stock between April 19, 2023, and June 22, 2025. During this period, Tesla made multiple public statements about the progress and safety of its autonomous technology. On an April earnings call, Musk said Tesla was “laser-focused” on launching the Robotaxi in June.
The lawsuit names Musk, Tesla, former CFO Zachary Kirkhorn, and current CFO Vaibhav Taneja as defendants. Tesla has not yet issued a response to the case.
The legal challenge follows another recent setback for the automaker. On Aug. 1, a federal jury in Florida awarded $329 million in damages over a fatal 2019 crash involving a Tesla operating on Autopilot, with the jury assigning $242.5 million in combined punitive and compensatory damages to the company. Tesla has stated it plans to appeal that verdict.
Source: Reuters