Shareholders filed a class action lawsuit against Tesla $TSLA and some officers, including CEO Elon Musk, for the company's claims about the efficacy of its autonomous-driving robotaxis.
Shareholders allege that Musk made “materially false” and “misleading” claims about the efficacy of Tesla’s autonomous-driving robotaxis
Tim Goessman/Bloomberg via Getty Images
Shareholders filed a class action lawsuit against Tesla $TSLA and some officers, including CEO Elon Musk, for the company's claims about the efficacy of its autonomous-driving robotaxis.
The lawsuit alleges that Musk and others made “materially false and misleading statements” about Tesla’s business, specifically about its robotaxi functions.
The suit claims that Tesla overstated the effectiveness of its autonomous driving tech, leading to a “significant risk” that these cars were dangerous and would violate traffic laws — which would subject the company to “heightened regulatory scrutiny.” The suit also alleges that Tesla’s financial prospects were overstated and that, as a result of all these allegations, Tesla’s public comments “were materially false and misleading at all relevant times,” according to a release.
At the end of June, Tesla launched its robotaxi service in Austin, Texas.
A release from the representing law firm referenced an article Bloomberg reported the day after Tesla’s launch, in which the outlet said U.S. safety regulators were looking into the company because its robotaxis apparently violated traffic laws on launch day.
In one such incident, a vehicle started to make a left turn, hesitated, then continued on the wrong side of the street for a few seconds. In another, a rider requested a stop and the Tesla obliged — in the middle of a crosswalk, where it remained and blocked traffic.
The firm went on to cite more reports over Tesla’s robotaxi traffic incidents, noting that the company’s stock fell about 6% after these reports came out.
The firm also cited a recent report from Friday in which federal jurors found Tesla partially liable for a 2019 crash in Florida, ruling that the company’s driver-assistance system failed to prevent a deadly collision. Tesla was ordered to pay over $300 million in damages.
Tesla did not immediately respond to Quartz's request for comment.
This latest blow to Tesla and Musk comes amid a reported drop in sales by more than 50% in the U.K. and Germany. On Monday — the day the lawsuit was filed — Tesla’s board approved a stock award worth around $29 billion for Musk.
The lawsuit was filed in the U.S. District Court for the Western District of Texas and includes shareholders who purchased Tesla stock between April 19, 2023 and June 22, 2025.
—Jackie Snow contributed to this article.
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