Tesla and CEO Elon Musk are being sued by shareholders who allege the company misled investors about the safety and performance of its self-driving technology.
According to Spectrum News, the lawsuit was filed Monday and centers on Tesla’s recently launched robotaxi service in Austin, which began operations in late June.
The complaint claims Tesla exaggerated the effectiveness of its autonomous driving systems, creating “a significant risk” that vehicles—including the new robotaxis—could operate in unsafe ways or violate traffic laws. Shareholders also allege the company failed to disclose that the vehicles posed safety hazards to riders.
The filing points to a drop in Tesla’s stock price following the robotaxi rollout. Over two trading sessions, shares fell 6.1%, wiping out an estimated $68 billion in market value. Plaintiffs say Musk and the company inflated both market perception and share prices by overstating the technology’s readiness and future prospects.
The case is led by Tesla investor Denise Morand and seeks damages on behalf of shareholders who purchased stock between April 19, 2023, and June 22, 2025.
You can see the full lawsuit on Spectrum News.
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