Tesla Faces Broader Lawsuits Over Autonomous Tech Claims

Tesla and CEO Elon Musk are facing a proposed class-action lawsuit from shareholders accusing them of securities fraud by concealing safety and regulatory risks related to the company's robotaxi and broader autonomous vehicle technology. The lawsuit follows a June 22 robotaxi test in Austin, Texas, during which Tesla vehicles were observed violating traffic laws, leading to an investigation by the National Highway Traffic Safety Administration. Shareholders allege that Musk and Tesla consistently overstated the safety and readiness of their self-driving technology, artificially boosting the stock price before it fell over 6% amid negative news and regulatory scrutiny. The suit also references a recent $329 million jury verdict against Tesla in Florida over its Autopilot system and ongoing regulatory challenges in California over how Tesla markets its autonomous features. These legal actions highlight increasing concerns among both investors and regulators about the credibility of Tesla's autonomous driving claims and the company's future in the sector. Tesla has not yet commented on the lawsuit.